Weqaya board members ordered to pay SAR 19.5 mln damages in class action

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The Appeal Committee for Resolution of Securities Disputes (ACRSD) issued a resolution on March 28, ordering some members of the board of directors and employees in Weqaya Takaful Insurance and Reinsurance Co. jointly to pay the claimants an amount of SAR 19.5 million in the class action lawsuit submitted by an investor (main claimant).
 

The decision was issued against Weqaya’s Abdullah bin Sa'ad Alzunaitan, Ali Ezedin Altamimi, Dawud Yusef Ahmad Safarneh, Fahad bin Muhamad Alashqar, Ali bin Abdullah Alsuhaily, Ali bin Saleh Alghamdi, Khaled bin Muhamad bin Hasan Alsuhali, Abdullah bin Muhamad Alfuzan, Khaled Fadhel Alaswad, Omar bin Muhamad Aldhouayan, Hussain Ali Al'atal, and Khaleel Ibrahim Muhamad Alshami, given that they are responsible for the committed violations on the shares of Weqaya.

The violators were convicted of violating Article 49 of the Capital Market Law, by intentionally participating in acts and practices that created a false and misleading impression regarding the company’s stocks. They aimed to create such an impression, through reducing the company's losses and inflating its revenues and assets, hence showing untrue financial position of the Ccmpany in its financial statements during 2013 and 2014.

The main claimant requested to obligate the respondents jointly to compensate the 318 claimants against the losses that resulted from purchase transactions they done on the company's shares due to such violations.

The decision also included obliging the respondents to jointly pay the main claimant a total of SAR 20,000 for lawsuit expenses. Other claims were rejected.

In January 2021, some members of Weqaya Takaful’s board of directors, audit and executive committees were convicted and fined SAR 1.3 million, Argaam earlier reported.