Melvin Capital Is Facing Nine Lawsuits Related to the GameStop Frenzy
Michelle Celarier, Institutional Investor, 22 March 2021
Gabriel Plotkin’s Melvin Capital, the hedge fund at the center of the GameStop trading frenzy in January, is a defendant in nine lawsuits by retail investors alleging a conspiracy to limit trading that caused them to lose money.
The hedge fund revealed the existence of the lawsuits in its annual ADV filing with the Securities and Exchange Commission.
Melvin was famously short GameStop and lost more than 50 percent during January following a short squeeze orchestrated by a Reddit forum called WallStreetBets, whose members included retail investors in GameStop. As the stock soared, various online brokerages catering to those investors, including Robinhood, restricted buying shares of GameStop, among other stocks heavily shorted by Melvin.
