What's Going On With GameStop Stock Monday?

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 CEO Ryan Cohen.

What Happened: Gill, also known as “Roaring Kitty,” is behind much of the recent volatility in GameStop and other retail darlings. Gill is often credited with starting the meme stock madness of 2021 that saw GameStop 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 stock price via social media. The lawsuit alleges that Gill loaded up on call options before making posts that sparked renewed interest in GameStop stock. The news comes as the U.S. Securities and Exchange Commission had been looking into recent options trading activity in GameStop.

GameStop 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 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 shares were down 6.44% at $23.10, while Chewy shares were up nearly 12% Monday morning, according to Benzinga Pro.

Photo: JJBers from Flickr.