Class action registered against Al-Mojil Group board members, staff

Logo of Mohammad Al-Mojil Group Co.

The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced the issuance of the Committee for the Resolution of Securities Disputes' (CRSD) decision, dated August 14, 2023, approving the acceptance of the request to register the class action lawsuit filed by an investor against some members of the board of directors and employees of Mohammad Al-Mojil Group Co.

The request includes the claim for compensation for the damages he suffered from as a result of the announcements issued by the company on Feb. 22, 2012 and April 21, 2012, that included the publication of the company's annual financial statements for the year 2011 and Q1 2012. Such publications was later proven, based on the company's announcement on September 22, 2012 regarding its financial results for Q2 2012, that such financial statements were incorrect, and that this alleged error led him to trade in the company's shares during the period from Feb. 22, 2012 until July 21, 2012 based on what was stated in the company's financial statements during the aforementioned period, which created an incorrect and misleading impression about the company's financial position during that period.

CRSD said, in a statement today that any person who purchased the company's share after the company announced on Feb. 22, 2012 the results of its financial statements for the financial period ending on Dec. 31, 2011, and the company's financial statements for Q1 2012 that was announced on April 21, 2012, and kept such share until the company's share was suspended from trading in the Saudi Exchange (Tadawul) on July 22,2012, has the right to submit to the CRSD a request to join the aforementioned class action lawsuit within a period of 90 days from the date of this announcement, based on Article (57) of the Resolution of Securities Disputes Proceedings Regulations.

According to data available with Argaam, the GSCRSD in April announced the issuance of a resolution regarding the class action filed by an investor against MMG board of directors, top executives and auditor for irregularities related to the company’s initial public offering (IPO). The 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 MMG.  

The CRSD will examine his/her request in accordance with the regulatory procedures, provided that the request must be submitted through the Capital Market Authority using the following link:

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