Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Atlas Lithium To Contact Him Directly To Discuss Their Options
New York, New York--(Newsfile Corp. - June 8, 2023) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Atlas Lithium Corporation ("Atlas Lithium" or the "Company") (NASDAQ: ATLX) and reminds investors of the August 1, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Atlas Lithium stock or options between March 25, 2022 and May 3, 2023 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/ATLX.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing 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.
Atlas Lithium 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. The Company, formerly known as Brazil Minerals, Inc. ("Brazil Minerals"), was founded by its Chief Executive Officer ("CEO") Marc Fogassa ("Fogassa") and initially operated as a diamond and gold miner. In 2013, Brazil Minerals went public via a reverse merger (the "Reverse Merger") that was underwritten by, among others, Hunter Wise Securities, LLC, of which Fogassa was a Managing Director at the time.
Shortly after the Reverse Merger, Brazil Minerals conducted a stock promotion budgeted at $1.6 million in which the Company issued hard mailer promotion materials, entitled "Diamonds are an investor's best friend," to investors. In addition to touting the profitability of the diamond mining industry, the promotional materials projected that Brazil Minerals' stock price would reach $18.90 per share over the long term. However, in May 2013, Company insiders began dumping a significant number of shares into the market. Thereafter, contrary to the Company's positive representations, Brazil Minerals' stock fell approximately 90% over the course of the year following the promotion.
After generating just $1.4 million in revenue from 2013 to 2021, the Company pivoted its purported focus from diamonds to lithium and officially changed its name to Atlas Lithium in October 2022. In connection with this transition, Atlas Lithium issued press releases to highlight, inter alia, the Company's purported success in lithium drilling and the nature of its mineral rights in Brazil. Hoping to capitalize on its new business model, Atlas Lithium conducted a second stock promotion in January 2023, engaging the bank EF Hutton to raise money for the Company leading up to a public offering of 675,000 shares priced at $6.00 per share.
On May 4, 2023, Bleecker Street Research ("Bleecker Street") published a report entitled "Atlas Lithium (ATLX): First Comes The Pump… Now Here Comes the Dump" (the "Bleecker Street Report"). The Bleecker Street 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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Atlas Lithium's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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