MEDGULF to continue legal claim as appeal court cancels ruling against former CEO

The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF) said that the court of appeal in Riyadh has canceled a previous ruling by the commercial court against the company’s former chief executive and managing director due to lack of jurisdiction.

MEDGULF said in a bourse statement that lack of jurisdiction does not mean losing the company’s right to file a legal claim, emphasizing that it will proceed in the case before the relevant judicial authorities to protect the rights of the shareholders.

A copy of the decision will be delivered to the company within 15 days of the ruling.

In August 2019, the commercial court in Riyadh ordered the former MD and CEO of MEDGULF to pay to the company an amount of SAR 152.7 million in the lawsuit raised against him, according to data compiled by Argaam.

In November 2017, MEDGULF submitted a request to file a claim against a former executive of the company, who also held the position of CEO and MD. The company requested a refund of unlawful money obtained by the executive and a compensation for losses resulting from his actions.