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What's Going On With GameStop Stock Monday?
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What's Going On With GameStop Stock Monday?
Jul 1, 2024 6:41 AM

GameStop Corp ( GME ) shares are trading lower Monday. The stock appears to be battling selling pressure as trader Keith Gill faces a manipulation lawsuit. Gill also disclosed a new stake in Chewy Inc ( CHWY ) , the online pet retailer founded by GameStop ( GME ) CEO Ryan Cohen.

What Happened: Gill, also known as “Roaring Kitty,” is behind much of the recent volatility in GameStop ( GME ) and other retail darlings. Gill is often credited with starting the meme stock madness of 2021 that saw GameStop ( GME ) and multiple heavily shorted stocks squeeze higher as retail traders piled into the names.

Roaring Kitty made a return to social media recently following three years of silence. He has posted position updates on Reddit and even held a livestream during market hours on his YouTube channel.

A new court document filed on June 28 reportedly accused Gill of manipulating GameStop's ( GME ) stock price via social media. The lawsuit alleges that Gill loaded up on call options before making posts that sparked renewed interest in GameStop ( GME ) stock. The news comes as the U.S. Securities and Exchange Commission had been looking into recent options trading activity in GameStop ( GME ).

GameStop ( GME ) shares are also experiencing weakness after Gill disclosed a 6.6% stake in pet retailer Chewy. The SEC filing confirming his stake came just days after the meme stock trader posted an image of a dog on X, which sparked speculation that he may be interested in Chewy.

The filing included a section asking the person to check a box to designate whether or not they are a cat. “I am not a cat” was checked in the filing. The filing also showed that Gill now owns more than 9 million shares of Chewy, worth about $245 million based on Friday’s close. GameStop ( GME ) supporters appear to be worried that Gill may shift his focus to Chewy.

Check This Out: ‘Roaring Kitty’ Keith Patrick Gill Accused Of Gamestop Pump-And-Dump Scheme In Class Action Lawsuit: ‘Suffered Significant Losses And Damages’

GME Price Action: GameStop ( GME ) shares were down 6.44% at $23.10, while Chewy shares were up nearly 12% Monday morning, according to Benzinga Pro.

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