Appeal Committee orders Al-Mojil officials to pay SAR 40.2 mln compensation to affected investors

Logo of Mohammad Al-Mojil Group (MMG)

The General Secretariat of Committees for Resolution of Securities Disputes said the Appeal Committee for the Resolution of Securities Disputes' (ACRSD) issued on May 6, 2021, a resolution on the class action filed by an investor against the officials responsible for the violations committed in Mohammad Al-Mojil Group (MMG).

The committee ordered Adel bin Mohammad bin Hamad Almojil, Fahad bin Ali bin Saad Alraqttan (a Saudi national), Ibrahim bin Sa’ad Alshuai’r, Sek Choy Choong, Amaar bin Adnan bin Ibrahim Qudoomy, Deloitte & Touche Company (Bakr Abu-alkhair & Partners), and Baker bin Abdullah Abu ِlkhair, to jointly pay the inflected investors compensation of SAR 40.2 million.

In January 2020, the Committee for the Resolution of Securities Disputes (CRSD) accepted the class action filed by an investor against MMG’s board of directors, top executives and auditor for irregularities related to the company’s IPO, Argaam reported.

On Oct. 15, 2019, ACRSD convicted MMG’s top executives and auditor of violating the Capital Market Law.

The parties were convicted of committing misleading practices that affected the value of MMG securities following the group's initial public offering (IPO) with respect to manipulating MMG's financial statements for the fiscal years from 2008 to 2011.