Lawsuit Against Keith Gill Voluntarily Dismissed: What's Going On With GameStop Stock?

GameStop Corp GME shares are trading slightly higher after-hours Monday after the class-action lawsuit against Keith Gill, also known as Roaring Kitty, was voluntarily dismissed by the plaintiff.

The Details: According to a court filing, the plaintiff, Martin Radev, filed to voluntarily dismiss the case alleging Gill manipulated GameStop’s stock price without prejudice to the defendant. 

GameStop shares ended Monday's session down by more than 5% after Gill disclosed a 6.6% passive stake in Chewy, Inc. CHWY through a 13G filing. Gill owns 9,001,000 Chewy shares worth roughly $300 million at the current price. 

Read Next: What’s Going On With Chewy Stock Monday?

In an interesting twist, Citadel Advisors held approximately 4.53 million call options on Chewy along with about 2.3 million of put options and approximately 425,000 Chewy shares, according to an SEC filing dated May 15 for the period ended March 31, 2024. 

In the infamous 2021 GameStop short-squeeze, Citadel Securities was involved in a payment-for-order-flow controversy with broker Robinhood Markets, Inc. HOOD. Citadel Securities was also accused of instructing the brokerage to halt trading of GameStop shares on its platform in order to stem losses related to Melvin Capital's large short position in the stock. 

Ken Griffin, founder and CEO of Citadel, LLC and Citadel Securities, testified in a hearing held by the House Financial Services Committee and denied any misconduct.

GME, CHWY Price Action: According to Benzinga Pro, GameStop shares are up 0.086% after-hours at $23.35 and Chewy shares are up 0.35% at $25.53 at the time of publication Monday.

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• What’s Going On With GameStop Stock Monday?

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