Massachusetts securities regulator 'looking into' Roaring Kitty's activities

By James Rogers and Gordon Gottsegen

Social-media posts from influential trader and analyst Keith Gill, also known as Roaring Kitty, have sent meme stocks GameStop and AMC surging in recent weeks

Influential trader Keith Gill, also known as Roaring Kitty, recently sparked meme-stock rallies that sent shares of GameStop Corp. and AMC Entertainment Holdings Inc. skyrocketing. But his trading activities have also caught the attention of the commonwealth of Massachusetts securities regulator.

"The securities division is looking into his activities," a spokesperson for Massachusetts Secretary of State Bill Galvin told MarketWatch. "There's not much more I can say at this point," the spokesperson added, noting that the investigation is ongoing.

Shares of GameStop (GME) surged Monday after a Reddit post from an account associated with Gill appeared to show him holding a big stake in the videogame retailer. On Sunday, Gill posted a screenshot that appeared to show holdings of 5 million GameStop shares with a value of $115.7 million, along with 120,000 June 21 $20 call options worth $65.7 million. The trader and analyst is also holding more than $29.2 million in cash, according to the screenshot. As of market open Monday, Gill's position would be worth over $386 million. A subsequent screenshot, posted Monday, showed Gill holding his position.

Related: Roaring Kitty's GameStop position worth over $386 million as of Monday morning

MarketWatch could not verify the authenticity of the screenshots. Gill also made a cryptic post on X, formerly known as Twitter, posting a green "reverse" card from the card game Uno.

Citing people familiar with the matter, the Wall Street Journal reported that the Securities and Exchange Commission has been reviewing trading in GameStop call options around the time of the social-media posts from Gill. However, it could not be determined if the SEC was reviewing Gill specifically, according to the Wall Street Journal.

Gill has not yet responded to requests for comment on the Massachusetts probe or the SEC's reported trading review.

Related: Latest GameStop stock rally fueled by 'baseless speculation,' brokerage CEO says

Citing people familiar with the matter, The Wall Street Journal also reported that Morgan Stanley's (MS) E-Trade platform is deciding whether to ban Gill. E-Trade declined to comment when contacted by MarketWatch. Gill has not yet responded to a request for comment.

Last month, Gill's return to social media fueled a rally in shares of GameStop and AMC (AMC), as well as a number of other stocks. GameStop and AMC were at the heart of the original meme-stock rally in 2021, which saw Gill rise to prominence.

In the wake of the 2021 meme-stock frenzy, Massachusetts regulators fined MassMutual $4 million after accusing the insurance company of failing to supervise Gill. Until late January 2021, Gill was employed as a financial wellness education director at MassMutual.

Related: E-Trade reportedly weighs banning meme-stock icon Roaring Kitty, despite worries of a backlash

GameStop shares are down 2.3% Tuesday and AMC shares are up 0.2%. The S&P 500 index SPX is up 0.3%.

Mike Murphy contributed.

-James Rogers -Gordon Gottsegen

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06-04-24 1450ET

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