The lawsuit follows a series of default notices issued by SPP on March 30, 2026, which Atlantic contends are baseless. According to Atlantic, SPP's claims of default are part of a coordinated effort to undermine the management of the Lyneer Subsidiaries. The company argues that SPP's actions are motivated by its own financial interests, particularly following a refinancing transaction in April 2025, where SPP acquired over $77 million worth of publicly traded shares in Atlantic. Atlantic maintains that this acquisition satisfied the outstanding debt owed to SPP, thus extinguishing any claims of default.
In addition to the lawsuit, the filing also disclosed the resignation of Mathew Evelt, the Chief Operating Officer of Atlantic, who cited the SPP default notices as a reason for his departure. However, Atlantic disputes the legitimacy of Evelt's claims, revealing that he had accepted a position with SPP and was allegedly supporting their efforts against the company. As a result, Atlantic has terminated Evelt's employment for cause, indicating serious concerns about his conduct and its impact on the company.
The situation has raised significant concerns regarding the governance and operational execution of Atlantic International Corp. The company is now focused on defending its interests against what it perceives as a hostile takeover attempt by SPP. The outcome of this legal battle could have substantial implications for the company's future operations and strategic direction.
