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‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise

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Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise

#101

Post by woeirua »

emteycz wrote: post #38
woeirua wrote: post #28

I doubt this lawsuit is going anywhere, but I wouldn't be surprised at all if this guy ends up in front of a judge at some point down the road. I really question his decision to come forward. Don't see what it gained him aside from the adulation of thousands of bots on r/WSB.

He didn't "come forward", other Reddit users made him their god (especially the 6 million new users of the sub), he was just posting his positions and commentary so others could learn. He became famous because he was in it long before anyone else and thus his gains got big.

He sat down for an interview with the WSJ where in he publicly outed himself. I wasn't talking about whether or not he deliberately became popular.

Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise

#102

Post by LevGoldstein »

mattnewton wrote: post #50
silexia wrote: post #36

Earlier quoted context omitted.

I have seen a lot of protests defending Gill. I think there is another side to the story though with many people who lost money buying the stock (selling options is different) based on his advice. Gill is held to a much higher standard than a normal person as he is a licensed security broker. If you look at my comment history on HN, you will see at the time I was pointing out a lot of Redditors were engaging in a pum…

Gill has been advocating GME as an undervalued “value” play for over a year on his YouTube channel, his behavior is pretty different than the reddit pump accounts. But, he is the most visible and de-anonymized target for this kind of lawsuit.

He continues to believe that it is undervalued, as per his witness testimony to the congressional committee:

https://docs.house.gov/Committee/Calendar/ByEvent.aspx?Event...

https://docs.house.gov/meetings/BA/BA00/20210218/111207/HHRG...

Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise

#103

Post by JumpCrisscross »

detaro wrote: post #96
JumpCrisscross wrote: post #37

Earlier quoted context omitted.

> How does this hold up in courts? Surprised they went for the courts instead of arbitration. Securities arbitration is notoriously biased towards the client. And even an allegation makes it onto the individual’s permanent regulatory record. Smells like a PR stunt.

Don't you need some kind of established relationship to go for arbitration? I.e. sure, against your advisor or broker that makes sense, but against a random person you weren't a client of?

> Don't you need some kind of established relationship to go for arbitration?

Broadly speaking, I believe so. But FINRA arbitration is odd. I wouldn't be surprised if this individual could claim he thought DeepFuckingValue was giving him advice over Reddit to gain standing. From there, it's in the system.

Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise

#104

Post by Aunche »

outoftheabyss wrote: post #12

I find it nauseating seeing the financial press, politicians and big time players claiming that their actions and ‘concern’ is based on not wanting retail investors to lose money as a stock peaks. Be honest, you don’t give a shit and even if this was your motivation, people have autonomy in the markets, although sometimes naive, they know the risks. Stop treating retail investors as children that need saving when in…

If the financial press really wanted to profit from feigning concern, they would have just parroted the populist narrative just like Elon Musk or Mark Cuban.

Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise

#105

Post by bionsystem »

fractionalhare wrote: post #88
bionsystem wrote: post #76

Earlier quoted context omitted.

If you sell a covered call you have no risk right ? Aren't you just capping potential returns in exchange for immediate premium ?

No you do have risk, it's just defined. The risk is equal to the collateral, which "covers" you in the event you're "called." This means the price of the underlying has reached the strike price of the option contract, and the counterparty has exercised (as they almost certainly would). Then you are obligated to provide 100 shares of the underlying * the number of calls sold to the counterparty. If that occurs, you lo…

I see what you mean, thanks for clarifying.

Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise

#106

Post by chupy »

superfrank wrote: post #40
newacct583 wrote: post #17

Earlier quoted context omitted.

Indeed, there's no meat to the suit detailed. Still, though. The fact that DeepFuckingValue just turns out to have been a licensed broker complicates the narrative quite a bit. Needless to say he can be expected to have known that the whole short trading theory of "Hold the Line" was bunk, and did nothing to disabuse the community of it. I say it every time this comes up: this guy's criminal exposure is really signif…

I posted an eerily similar comment to this on Reddit. Yeah, the suit is BS, but the fact that he's a licensed broker really shifts the narrative a bit and makes you start to question things. It's no longer "Johnny Everyman finds Picasso painting at yard sale", it's now "Museum curator finds Picasso painting at yard sale". I've been an active member of WSB for more than 5 years now and I've followed this story since t…

Do you think that he is the only member of WSB that is a licensed broker or works in finance? I don't want to bet but I would say there is a good chance that people that a lot of people that used to post on WSB have either financial background or work in finance/trading.

Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise

#107

Post by joshspankit »

fractionalhare wrote: post #92
JumpCrisscross wrote: post #39

Earlier quoted context omitted.

> Why is he always referred to as 'Roaring Kitty' from youtube when he is undoubtedly better known as DeepFuckingValue from reddit? Makes sense for this case. Public messaging versus publicly visible but arguably private conversation.

I think it might be even simpler than that - "Roaring Kitty" is printable in a mainstream news publication, "DeepFuckingValue" is not :)

Everyone can just do DeepF**ingValue if that’s the issue

Re: ‘Roaring Kitty’ Sued for Securities Fraud over GameStop Rise

#108

Post by superfrank »

chupy wrote: post #106
superfrank wrote: post #40

Earlier quoted context omitted.

I posted an eerily similar comment to this on Reddit. Yeah, the suit is BS, but the fact that he's a licensed broker really shifts the narrative a bit and makes you start to question things. It's no longer "Johnny Everyman finds Picasso painting at yard sale", it's now "Museum curator finds Picasso painting at yard sale". I've been an active member of WSB for more than 5 years now and I've followed this story since t…

Do you think that he is the only member of WSB that is a licensed broker or works in finance? I don't want to bet but I would say there is a good chance that people that a lot of people that used to post on WSB have either financial background or work in finance/trading.

Oh, there's literally no way he's the only one. Hell, Martin Shkreli used to be a mod of the sub (or at least a very active member).

There are plenty of people on WSB who very clearly know what they are talking about and trade for a living. I just think the narrative became that he was this random guy and finding out that he has a little more experience than people thought changes the story a little bit.

Like I said above, I really don't think he did anything wrong and I don't think he was intentionally being misleading. He didn't really even post many comments on Reddit. Half the time he just posted a screenshot of his account and that's it. I think people just interpreted it how they wanted.

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