Class action against Mobily's former executives extended for 90 days

The General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) announced that the class action filed by an investor against a number of Etihad Etisalat Co.'s (Mobily) former top executives and board members, has been extended for 90 additional days to allow affected investors to join the lawsuit.

The new extension will start as of the end of the 90-day period following the committees’ ruling, dated Dec. 6, 2020.

Any person who bought the company's shares after the announcement of its preliminary financial results for Q2 2013, which included misleading and inaccurate data, and kept the shares until the company's stock was halted by the close of trading on Oct. 29, 2014, is required to file with the committee to join the above-stated collective lawsuit, within 90 days.

The market regulator explained that Oct. 29, 2014, was the last date of trading Mobily shares before the telecom operator announced on Nov. 3, 2014, its preliminary financial results for Q3 2014, and ahead of the company's disclosure about providing misleading information in its financials at the time of revenue recognition, and amending the financial results for the previous fiscal periods.

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, Argaam reported.

Mobily’s executives were charged of violations that led to a false and misleading impression about the value of its stock. 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’ revenue over these quarters.

In December, the Capital Market Authority (CMA) said that ACRSD accepted the class action filed by an investor against a number of Mobily former top executives and board members, Argaam reported.