With reference to the announcement published on the Capital Market Authority's (CMA) website on 11/01/2024, regarding the approval by the CRSD to register the class action filed by an investor against some members of the board of directors and employees of Mohammad Al-Mojil Group Company, seeking compensation for damages resulting from the company's announcements that were later proven to be incorrect, the CMA announces that the ACRSD has issued a final decision obligating the respondents to pay SAR 90.8 million to 668 claimants who joined the class action announced on the aforementioned date.
According to ACRSD, its final decision regarding the aforementioned class action was issued after ACRSD referred the lawsuit to CRSD to examine the petition submitted by one of the respondents. A decision on the petition was issued by the CRSD on 13/03/2025, and became a final decision on 22/04/2025. The ACRSD's ruling obligated Adel bin Mohammad bin Hamad Almojil, Fahad bin Ali bin Saad Alraqttan and Ibrahim Zadah, individually and jointly, to pay the amount of SAR 90.8 million to 668 claimants who joined the announced class action, according to the entitlements determined by the CRSD and affirmed by ACRSD. The compensation covers the damages sustained by the investors as a result of the company's announcements issued on 22/02/2012 and 21/04/2012, that included the publication of the Company's annual financial statements for the year 2011 and the first quarter of 2012. Such publications were later proven, based on the Company's announcement on 22/09/2012 regarding its financial results for the second quarter of 2012, that such financial statements were incorrect, thus created a false and misleading impression of the financial position of the Company during such period.
The CMA stresses the importance of investors' confidence in the capital market for its growth and prosperity. The CMA continuously monitors any violations of the Capital Market Law, its implementing regulations, and other related laws under its jurisdiction, identifying perpetrators, and taking the necessary procedures to impose deterrent penalties against them, in order to enhance the CMA's efforts aimed at creating an attractive investment environment for all categories of investors and safe from unfair or unsound practices or that involve fraud, cheating, misleading, deception or manipulation, and to publicly disclosing such enforcement actions, ensuring that market participants are able to exercise their legally protected rights, including facilitating compensation claims for those harmed by violations and unlawful practices in the capital market.
Details of the announcement can be found as published on the official website of GS-CRSD through the following link:
Announcement of the GS-CRSD – click here