Roaring Kitty accused of securities fraud by an investor 2024-07-01 09:42
GMP call option holder Martin Radev, through his law firm Pomerantz, filed a lawsuit against Roaring Kitty in the Eastern District of New York on June 28, accusing it of orchestrating a plan to bid up the stock price and sell it through a series of posts from social media beginning May 13.
Eric Rosen, a former federal prosecutor and founding partner at law firm Dynamis LLP, said the lawsuit was "doomed to fail from the start" because the argument that Roaring Kitty should have disclosed its intent to sell the options didn't hold up in court because no "rational person, let alone rational investor," would expect Roaring Kitty to hold on to all options until their expiration date.