GameStop Corp., one of the popular “meme” companies whose stock has soared this year, said U.S. securities regulators are looking into the trading of its shares.
The video-game retailer said Wednesday that staffers from the Securities and Exchange Commission contacted the company on May 26, for voluntary production of documents and information related to the stock.
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“We are in the process of reviewing the request and producing the requested documents and intend to cooperate fully with the SEC staff regarding this matter,” the company said in a quarterly filing. “This inquiry is not expected to adversely impact us.”
Since February, securities regulators have been combing social media and message-board posts for signs that fraud played a role in dizzying stock swings for GameStop, AMC Entertainment Holdings Inc. and other companies, people familiar with the matter said at the time.
GameStop is one of a handful of stocks that have been fueled by Reddit traders who invest based on social-media buzz. Shares of the money-losing chain have gained 1,500% this year, closing Wednesday at $302.56.
The stock fell as much as 13% in extended trading after the company announced it may issue new shares, along with the hiring of two Amazon.com Inc. veterans for top leadership roles and fiscal first-quarter results.