NEW YORK, July 1 (Reuters) -

Investors in GameStop ( GME ) have for now withdrawn their

lawsuit accusing Keith Gill, who is known as "Roaring Kitty" and

helped spur the meme stock mania of 2021, of defrauding them

through a "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,

but voluntarily withdrawn on Monday without explanation. The

lawsuit can be refiled, according to the filing.

Lawyers at the Pomerantz law firm, which represents the

investors, did not immediately respond to requests for comment.

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, 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.

On May 12, he 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, then 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.