Bob Frenchman Quoted in Reuters on GameStop

Posted by Mukasey Frenchman LLP | Feb 08, 2021

WASHINGTON (Reuters) – The U.S. Securities and Exchange Commission (SEC) is looking at every aspect of and parties involved in the “Reddit rally” of GameStop Corp and other stocks, said two people familiar with the matter, suggesting a swath of industry participants may be swept up in the regulator's review of the trading frenzy.

The people added that the furious surge in shares of GameStop, AMC Entertainment Holdings and other stocks contained familiar patterns, in that it involves users of online platforms hyping up stocks – something seen in the past on bulletin boards and social media platforms.

However, manipulation cases can be complex and may rely on more than simply language posted on a message board, they said.

Thousands of Reddit users trading on low-cost retail platforms including Robinhood banded together to drive up the prices of GameStop and other “meme” stocks, squeezing hedge funds that had taken short positions, or bets against those shares.

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