Announcing ACRSD Decision in the Class Action filed by Investor against Etihad Etisalat Co. (Mobily) Former Executives
Wednesday, September 07, 2022 at 4:23 PM
The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced the issuance of the Committee for Resolution of Securities Disputes (CRSD) decision No. (2598/L.S/2022) of the year 1444 H, on 10/01/1444 H, corresponding to 08/08/2022, in the class action lawsuit submitted by an investor (main claimant) against a number of respondents, some of whom are senior executives in Etihad Etisalat Co. (Mobily), being: Badr bin Saleh bin Humoud Alturaifi, Muhammad Hafni Mahmoud Thabet, Khaled bin Omar bin Muhsen Alkaf, Thamer bin Muhammad bin Abdullah Alhosani, and Ahmad Hussein Ali Abdulnabi, who are responsible for the committed violations in the share of Etihad Etisalat Co. (Mobily), which the decision of the Appeal Committee for Resolution of Securities Disputes (ACRSD) No. (1997/L.S/2020) of the year 1442 H, was issued against them on 14/01/1442 H, corresponding to 02/09/2020, stating the conviction of the above-mentioned respondents of violating Article (49/a) of the Capital Market Law for committing acts that created a false and misleading impression regarding the value of the security of the Company, by proving misleading and false information in the Company's financial statements for the second, third and fourth quarters of 2013, as well as the first, second and third quarters of 2014, which led to the inflation of the revenues in the Company’s financial statements during such time-periods, where the main claimant requested to oblige the respondents jointly to compensate the claimants against the damages they incurred as a result of such violations.
The ACRSD decision supported the CRSD decision No. (3831/L/D2/2022) of the year 1443 H, dated 21/10/1443 H, corresponding to 22/05/2022, including obliging the above-mention respondents to jointly pay the amount of (SR 1,225,101,291.08) one billion two hundred twenty-five million one hundred one thousand two hundred ninety-one Saudi Riyals and eight Halalas, in accordance with the entitlement of each claimant in the case, totaling (1,045) one thousand forty five claimants. The ACRSD decision also including obliged respondents to jointly pay the main claimant the amount of (SR. 12,000) twelve thousand Saudi Riyals for lawyer fees.
View the General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) Announcement
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The CMA’s efforts in this regard aim at creating attractive investment environment for all investors’ types, and a safe environment free from incorrect and unfair practices including fraud, cheating, deception, misleading or manipulation.