Jaime Rogozinski, the founder of the Reddit community WallStreetBets, is suing the platform for alleged breach of contract and defamation. The lawsuit was filed on Tuesday in Florida, where Rogozinski lives.
Rogozinski claims that he was wrongfully ousted from WallStreetBets, which he created in 2012 as a forum for investors to discuss stock market trends and share investment ideas. The platform gained widespread attention in 2020 amid the GameStop short squeeze and meme stock frenzy. However, Rogozinski says that he was forced out of the group in January 2020 without explanation or justification.
The lawsuit alleges that Reddit acted in bad faith by removing Rogozinski from the platform and that he was defamed by a statement issued by the company following his removal. The statement, which was posted on Wall Street Bets, referred to Rogozinski as a “corrupt” and “dishonest” individual.
According to the lawsuit, Rogozinski’s reputation has been damaged by the statements made by Reddit, and he has suffered financial losses as a result. The lawsuit seeks unspecified damages as well as an order requiring Reddit to reinstate Rogozinski as a moderator of WallStreetBets.
In response to the lawsuit, a spokesperson for Reddit said that the company believes the claims are without merit and that it will defend itself vigorously. The spokesperson also noted that Reddit had previously taken action against Rogozinski for violating its content policies.
The lawsuit is the latest development in a series of controversies surrounding WallStreetBets and its role in the stock market. The platform has been criticized for fueling a speculative frenzy that has led to volatility in the markets, as well as for its role in the GameStop short squeeze. Rogozinski has been a vocal defender of the platform, arguing that it has helped to democratize investing and level the playing field for individual investors.