Class action against Weqaya Takaful's some board members, employees accepted

Logo of Weqaya Takaful 

The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced the issuance of the CRSD’s decision, on Nov. 9, on accepting the class action filed by an investor against some board members and employees of Weqaya Takaful Insurance and Reinsurance Co.’s, against whom a final resolution was issued, according to a statement to the Capital Market Authority (CMA). 

The final decision was issued by the Appeal Committee for Resolution of Securities Disputes (ACRSD) on Nov. 3, 2020, and was published on the websites of GS-CRSD's and the Capital Market Authority (CMA) on Jan. 6, 2021, about their conviction of violating Article (49/a) of the Capital Market Law. They were convicted of giving false and misleading impression about the value of Weqaya’s securities by reducing the company’s losses, aggrandizing its revenue and assets, in order to give a false impression about the insurer’s balance sheet for the periods ended Dec. 31, 2013 and March 31, 2014.

The investor requested registering the class action with the CRSD and ordering the defendants to compensate him for the losses arising from his purchase transactions of Weqaya’s shares.

In this regard, the CMA indicated to traders and investors in the Saudi capital market that any person who had purchased the company's share after announcing its annual financial results for the financial period ending on Dec. 31, 2013, that included the misleading and incorrect data on 07/04/2014, and kept that share until the Company's share was suspended in the Saudi Exchange (Tadawul) at the end of the trading session of 04/06/2014, being the last date for trading the Company's share prior to delisting it from the Saudi Exchange (Tadawul) on 29/05/2017, has the right to submit a request to the CRSD to join the said class action lawsuit within a period

The CMA announced that a decision was issued by the ACRSD, on Nov. 3, 2020, convicting some board members and employees of Weqaya of manipulation, fraud and scam of the capital market rules.