Reddit triumphs as WallStreetBets founder's lawsuit crumbles | Mint
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Business News/ News / World/  Reddit triumphs as WallStreetBets founder's lawsuit crumbles
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Reddit triumphs as WallStreetBets founder's lawsuit crumbles

US judge dismisses lawsuit filed by WallStreetBets founder against Reddit. Founder accused Reddit of unjustly banning him and infringing on his trademark rights. Judge rejected his claims and dismissed the lawsuit.

Meme stocks gain popularity through discussions, often among inexperienced investors, in online forums including Twitter. Photo: ReutersPremium
Meme stocks gain popularity through discussions, often among inexperienced investors, in online forums including Twitter. Photo: Reuters

On Tuesday, a US judge dismissed a lawsuit filed by the founder of WallStreetBets, the online community that popularized "meme" stocks, against Reddit.

The founder, Jaime Rogozinski, had accused Reddit of unjustly banning him from moderating the community and infringing on his trademark rights, Reuters reported.

 According to Rogozinski, Reddit removed him in April 2020 to prevent him from controlling the renowned brand that contributed to Reddit's substantial valuation of $10 billion by late 2021.

US District Judge Maxine Chesney in San Francisco issued a 15-page decision dismissing Jaime Rogozinski's assertion that he owns the WallStreetBets trademark based on his claim that the market associated it with him and he was responsible for making the brand famous.

Also Read: WallStreetBets founder sues Reddit

Despite the fact that Rogozinski had applied for the trademark in March 2020, when the community had 1 million subscribers (it has since grown to 14 million), the judge rejected his argument.

Chesney also dismissed Rogozinski's state law claims concerning his removal from the community, stating that they were either preempted by a federal law that grants extensive immunity to websites that primarily publish external content or that Rogozinski did not have the legal standing to file the lawsuit, Reuters noted.

Chesney said Rogozinski can try to amend his complaint.

"While we are disappointed with today's ruling, Rogozinski remains confident and committed to vindicating his rights," his lawyer James Lawrence said in an email.

It has called Rogozinski's lawsuit a "transparent attempt to enrich himself," and said it got involved to prevent consumer confusion, preserve goodwill, and let people in the r/WallStreetBets subreddit decide who should guide it.

Rogozinski was pursuing a minimum of $1 million in compensation as part of his legal action.

Meme stocks have gained traction through conversations, frequently among inexperienced investors, on online platforms such as Twitter.

The popularity of these stocks often results in erratic price fluctuations that do not align with the underlying fundamentals or financial condition of the companies involved.

Noteworthy meme stocks have included AMC Entertainment Holdings, GameStop, Koss, and the now-defunct Bed Bath & Beyond.

 

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Published: 12 Jul 2023, 06:43 AM IST
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