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Logo of Tihama Advertising and Public Relations Co.
Tihama Advertising and Public Relations Co. announces the issuance of the verdict by the administrative Court of Appeal in Riyadh on Oct. 24, rejecting the appeal submitted by the company against a lawsuit filed by Riyadh Municipality obligating it to pay SAR 11.8 million.
The company said in a bourse statement that the judgment issued on 17/08/1442 AH was confirmed by the Administrative Court in Riyadh.
The Riyadh Municipality filed a lawsuit before the Administrative Court in Riyadh to demand Tihama to pay SAR 11.8 million for a claim related to the dues for renting and exploiting advertising sites in Riyadh.
There will be no impact on the income statement, as Tihama previously recorded a provision against the full value of the claim.
There will be no substantial legal, regulatory, or operational risks as a direct effect that may result from the lawsuit, except the cash flow as a result of its obligation to the lawsuit amount.
The company, based on documents available with it, obtained legal advice, and authorized a lawyer to appeal to the preliminary judgment that has been issued against it and the liability that the company handled as a result of the lawsuit and rejection of the appeal and obligating the company to pay the lawsuit amount.
Tihama filed a lawsuit against Riyadh Municipality in the Administrative Court to claim compensation for the damage caused to the advertising billboards owned by it and which were removed by the defendant in a way that led to the damage to it, as was announced on Sept. 1, on Tadawul.
According to data compiled by Argaam, Tihama filed a lawsuit before the Administrative Court against Riyadh Municipality in September, claiming a compensation for the damage caused to its advertising billboards by the municipality.
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