Atlas Lithium Corporation (ATLX) Misled Investors Regarding its Mining Capabilities and Conducted Deceptive Promotions to Inflate the Company’s Stock
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Atlas Lithium Corporation (NASDAQ: ATLX) common stock between May 25, 2022 and May 3, 2023. Atlas Lithium, formerly known as Brazil Minerals, is a mineral exploration and development company with lithium projects and exploration properties in other critical and battery minerals, including nickel, rare earths, graphite, and titanium.
According to the complaint, throughout the class period, defendants failed to disclose that: (i) the Company overstated the success of its lithium mining and misrepresented the nature of its Brazilian mineral rights; (ii) in connection with these misrepresentations, Atlas Lithium conducted deceptive promotions to artificially inflate the value of the Company’s stock; (iii) the foregoing conduct was designed to allow CEO Fogassa and other Company insiders to sell shares back into the market for a profit before the true nature of Atlas Lithium’s business was revealed; and (iv) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
On May 4, 2023, Bleecker Street Research published a report entitled “Atlas Lithium (ATLX): First Comes The Pump … Now Here Comes the Dump.” The report described Atlas Lithium as a “pretender” and stated that “it resembles many of the characteristics of a pump and dump.” The report alleged that Atlas Lithium’s “predecessor company did a similar promotion before bagging retail investors”; that “Atlas Lithium’s CEO was previously associated with Hunter Wise Securities, a broker fined $105 million for claiming to sell physical gold that it didn’t have”; and that “[EF Hutton, a] similarly disastrous bank[,] handled ATLX’s most recent offering and uplisting in early January.” On this news, Atlas Lithium’s stock price fell $12.95 per share, or 43.34%, to close at $16.93 per share on May 4, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Atlas Lithium Corporation. Shareholders who want to act as lead plaintiff for the class must file their papers by August 1, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
