Final verdict issued to compensate investors affected by Al Mojil IPO violations

The General Secretariat of the Committees for the Resolution of Securities Disputes (GSCRSD) on Monday announced the issuance of the resolution of the Appeal Committee for the Resolution of Securities Disputes, dated March 2, 2020 regarding 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).

According to a statement by the GSCRSD, the operative part of the decision concluded with the following:

- Compensating the affected investors (who filed the class action) from the gains collected from the first respondent: Muhammad bin Hamad bin Abdulkarim Al Mojil, which was ruled for in the ACRSD decision No. (1189/L.S/2017) of the year 1438 H. dated 11/05/1438 H., as explained in the reasons of the decision.

- Compensating the main claimant for the expenses of the class action from the gains collected from the first respondent: Muhammad bin Hamad bin Abdulkarim Al Mojil, which was ruled for in the ACRSD No. (1189/L.S/2017) of the year 1438 H. dated 11/05/1438 H.

- Obliging the rest of the respondents, combined, to bear whatever amounts that exceed the amounts collected from the illegal gains achieved by the first respondent: Muhammad bin Hamad bin Abdulkarim Almojil, in accordance with the CRSD's decision No. (1788/L/D1/2016) of the year 1437 H. dated 10/09/1437 H., and upheld by the ACRSD decision No. (1189/L.S/2017) of the year 1438 H. dated 11/05/1438 H.

- Rejecting other claims.

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), Argaam reported earlier.

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.