San Diego, CA -- (SBWIRE) -- 06/15/2023 -- An investor, who purchased shares of Atlas Lithium Corporation (NASDAQ: ATLX), filed a lawsuit over alleged violations of Federal Securities Laws by Atlas Lithium Corporation in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Atlas Lithium Corporation (NASDAQ: ATLX) have certain options and for certain investors are short and strict deadlines running. Deadline: August 1, 2023. NASDAQ: ATLX investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Brazil based Atlas Lithium Corporation 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.

Atlas Lithium Corporation, 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, the plaintiff alleges that, in May 2013, company insiders began dumping a significant number of shares into the market and that 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."

Shares of Atlas Lithium Corporation (NASDAQ: ATLX) declined from $45.00 per share on May 02, 2023, to $14.14 per share on May 05, 2023.

The plaintiff claims that between March 25, 2022 and May 3, 2023, the defendants made false and/or misleading statements and/or failed to disclose that the Company overstated the success of its lithium mining and misrepresented the nature of its Brazilian mineral rights, that in connection with these misrepresentations, Atlas Lithium conducted deceptive promotions to artificially inflate the value of the Company's stock, that 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 that as a result, Defendants' public statements were materially false and/or misleading at all relevant times.

Those who purchased shares of Atlas Lithium Corporation (NASDAQ: ATLX) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.