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ATLX.US

Atlas Lithium Corporation (ATLX) Case on Misleading

C.D. California
Court
2:23-CV-04355
Case number
25 Mar 2022
Class period Start
03 Mar 2023
Class period End
  • The Bleecker Street published a report pointing out that $ATLX has characteristics of a pump and dump scheme.
  • Investors have reasons to suspect Atlas & its Leaders of misleading statements regarding the Company's prospects.
On May 4, 2023, The Bleecker Street published a report about Atlas Lithium Corporation, making the following statements:
  • "We have a short position on shares of Atlas Lithium as we believe it exhibits many characteristics of a pump and dump scheme.
  • Its predecessor company engaged in a similar promotional activity a decade ago, resulting in significant losses for retail investors.
  • In the case of Atlas Lithium, its CEO has a previous association with Hunter Wise Securities, a broker that was fined $105 million for falsely claiming to sell physical gold.
  • Hunter Wise was involved in raising funds for Atlas Lithium when it was known as Brazil Minerals. Moreover, ATLX's most recent offering and uplisting in early January were handled by a similarly problematic bank.
  • Retail investors have enthusiastically embraced the narrative, expressing their hopes for a future acquisition.
  • Atlas’ “Proven or Inferred” Reserves are only 80,000 tons of Lithium Carbonate Equivalent (LCE), and they are contained in a formation that averages just 0.22% Li2O, well below the economic viability of 1%."
Atlas Lithium's press releases in February & March 2023 stated, among other things, “We are quickly progressing on our desired strategic roadmap,” and “Our recent site visits at our flagship, 100%-owned lithium project were quite productive, allowing us to showcase our hard-rock lithium assets and ongoing drilling campaign. Our successful uplisting to Nasdaq and enhancement of our balance sheet allows us to continue to execute on our operational goals.”

Taking all facts into account, Investors have reasons to suspect Atlas and its Leaders of misleading statements regarding the Company's business, operations, and prospects, specifically:
  1. the Company overstated the success of its lithium mining and misrepresented the nature of its Brazilian mineral rights;
  2. in connection with these misrepresentations, Atlas Lithium conducted deceptive promotions to artificially inflate the value of the Company's stock;
  3. the foregoing conduct was designed to allow the CEO 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
  4. as a result, public statements were materially false and/or misleading at all relevant times.
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
03 March 2023
Filing date
02 June 2023
Lead Plaintiff Deadline
02 August 2023
Collecting participants…
Created by Stan Vick, Scout

Atlas Lithium Corporation Common Stock

Atlas Lithium Corporation operates as a mineral exploration and mining company in Brazil. It operates the Minas Gerais lithium project that consists of 54 mineral rights covering an area of 59,275 ...

    Ticker
    ATLX.US
    CIK
    1540684
    Sector
    Basic Materials
    Industry
    Other Precious Metals & Mining
    Country
    USA
    Address
    Rua Buenos Aires, Belo Horizonte, MG, Brazil, 30315-570