Class action lawsuit approved against Mobily's former executives

The General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) confirmed on Dec. 28, 2020, the registration of the class action lawsuit submitted by an investor against former senior executives in Etihad Etisalat Co. (Mobily).

The decision came after several requests shared the same lawful bases and claimed facts, as well as having the same subject matter reached the lawful number allowing the registration of a class action.

Furthermore, any person who purchased Mobily shares, after it announced initial financial results for Q2 2013 on July 16, 2013, which included the misleading and false information, and maintained the ownership of such shares until the share was suspended on Oct. 29, 2014, and not previously submitted to join this class action, has the right to submit a request with the Committee for Resolution of Securities Disputes (CRSD) to join the class action lawsuit within 90 days from Dec. 6, 2020.

Last October, the Appeal Committee for Resolution of Securities Disputes (ACRSD) convicted a number of Mobily’s former executives of violating the Capital Market Law, according to GS-CRSD, Argaam reported.

Mobily’s executives were charged with violations that led to a false and misleading impression about its stock value. They stated incorrect data in the company’s financials for Q2, Q3, and Q4 of FY2013, and Q1, Q2 and Q3 of FY2014, which inflated the telecom’s revenue over these quarters.

These officials were Badr bin Saleh bin Hamoud Altarifi, Muhammad Hefni Mahmoud Thabet, Khalid bin Omar bin Mohsen Alkaf, Thamer bin Muhammad bin Abdullah Alhosani, and Ahmed Hussein Ali Abdulnabi.