NEW YORK, July 1 (Reuters) - Keith Gill, the investor

known as "Roaring Kitty" who helped spur the meme stock mania of

2021, was sued by GameStop ( GME ) investors who said they lost

money through his "pump-and-dump" scheme for the videogame

retailer.

A proposed class action accusing Gill of securities fraud

was filed on Friday in the Brooklyn, New York federal court.

Investors led by Martin Radev, who lives in the Las Vegas

area, said Gill manipulated GameStop ( GME ) securities between May 13

and June 13 by quietly accumulating large quantities of stock

and call options, and then dumping some holdings after emerging

from a three-year social media hiatus.

They said Gill's activities caused GameStop's ( GME ) share price to

gyrate wildly, generating "millions of dollars" in profit for

him at their expense.

"Defendant still enjoys celebrity status and commands a

following of millions through his social media accounts," the

complaint said. "Accordingly, Defendant was well aware of his

ability to manipulate the market for GameStop ( GME ) securities, as

well as the benefits he could reap."

Gill did not immediately respond to requests for comment on

Monday.

He had on May 12 posted a cryptic meme on the social media

platform X that was widely seen as a bullish signal for

GameStop ( GME ), whose stock he cheerleaded in 2021.

GameStop's ( GME ) share price more than tripled over the next two

days, but gave back nearly all the gains by May 24.

On June 2, Gill revealed that he owned 5 million GameStop ( GME )

shares and 120,000 call options, and on June 13 revealed he had

shed the call options but owned 9 million GameStop ( GME ) shares.

Investors said the truth about Gill's investing became known

on June 3 when the Wall Street Journal wrote about the timing of

his options trades and said the online brokerage E*Trade

considered kicking him off its platform.

The meme stock mania was fueled in part by investors stuck

at home during the pandemic, and led to a "short squeeze" that

caused losses for hedge funds betting stock prices would fall.

On Monday, trading in Chewy shares became volatile

after Gill revealed a 6.6% stake in the pet products retailer.

The case is Radev v. Gill, U.S. District Court, Eastern

District of New York, No. 24-04608.