Class action against Al-Mojil’s board, top executives accepted

The Committee for the Resolution of Securities Disputes (CRSD) accepted the class action filed by an investor against Mohammad Al-Mojil Group Co.’s (MMG) board of directors, top executives and auditor for irregularities related to the company’s initial public offering (IPO).

The class action was accepted as the number of requests that share the same legal bases, merits and subject matter of the claims have reached the specified threshold, the General Secretariat of Committees for Resolution of Securities Disputes said in a statement on Sunday.

Based on the resolution of securities disputes regulations, any person who bought the company’s stock – after the IPO stage- and held it to the date of Feb. 22, 2012, on which the company announced incurring losses of SAR 1.03 billion for Q4 2011, has the right to submit an application to the CRSD to join the above-mentioned class action suit.

On Oct. 15, 2019, the Appeal Committee for the Resolution of Securities Disputes convicted MMG’s top executives and auditor of violating the Capital Market Law, Argaam reported.

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.

The CRSD on Dec. 1, 2019 announced accepting a request to register the class action suit filed by an investor against MMG’s board of directors.