CMA approves SAR 40 mln compensation for shareholders hit by Al-Mojil violations

Logo of Mohammad Al-Mojil Group

Saudi Arabia’s Capital Market Authority (CMA) announced today, June 12, the completion of procedures related to paying SAR 40 million in compensation for shareholders affected by Mohammad Al-Mojil Group’s violations, according to a CMA statement.

This includes shareholders for whom a final resolution was issued by the Appeal Committee for the Resolution of Securities Disputes (ACRSD) related to securities disputes with the group’s senior executives and auditor during the post-initial public offering (IPO) period.

The General Secretariat of Committees for Resolution of Securities Disputes stated that ACRSD issued its final resolution, on May 6, 2021, in the class action filed by an investor against the officials accused of violations against Al-Mojil in the post-public subscription phase.

ACRSD affirmed the resolution issued by the Committee for Resolution of Securities Disputes (CRSD), which obligates defendants to pay SAR 40.21 million in compensation for affected investors who joined the class action.

The General Secretariat of Committees for Resolution of Securities previously announced that CRSD issued a decision, on Jan. 20, 2020, approving the class action filed by an investor against Al-Mojil's board members as well as some of its senior executives and auditor.

The General Secretariat also earlier revealed that the ACRSD issued a resolution, on Oct. 15, 2019, convicting some officials of the group and its auditor for violating Article A/49 of the Capital Market Law and Article 7 of the Market Conduct Regulations.

They were accused of committing actions that created a misleading impression regarding the value of the company’s securities after the IPO. The violations are related to misrepresentation and manipulation of financial statements for 2008, 2009, 2010 and 2011.

Further, the General Secretariat announced that the CRSD issued, on Dec. 1, 2019, a resolution, accepting a request to register a class action submitted by an investor against Al-Mojil's board members, as well as some of its senior executives and auditor during the post-IPO phase.