The CMA: (SR. 19.5 Million) Compensations in Class Action Filed by Investor against Some Board Members and Employees in Weqaya Takaful Insurance and Reinsurance Co.
Thursday, April 13, 2023 at 6:12 PM
The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) announced the issuance of the ACRSD’s final decision No. (2851/L.S/2023 of 1444 H.) dated 06/09/1444 H. corresponding to 28/03/2023, in the class action lawsuit submitted by an investor (main claimant) against some members of the Board of Directors and employees in Weqaya Takaful Insurance and Reinsurance Co.; being: Abdullah bin Sa’ad bin Abdullah Alzunaitan, Ali Ezedin Abduladhim Altamimi, Dawud Yusef Ahmad Safarneh, Fahad bin Muhamad bin Abdulmohsen Alashqar, Ali bin Abdullah bin Ali Alsuhaily, Ali bin Saleh bin Hamed Alghamdi, Khaled bin Muhamad bin Hasan bin A’fair Alsuhali, Abdullah bin Muhamad bin Ibrahim Alfuzan, Khaled Fadhel Ahmad Alaswad, Omar bin Muhamad bin Omar Aldhouayan, Hussain Ali Muhamad Al’atal, and Khaleel Ibrahim Muhamad Alshami, responsible for the committed violations on the shares of Weqaya Takaful Insurance and Reinsurance Co., against whom the final decision of the Appeal Committee for Resolution of Securities Disputes (ACRSD) No. (2045/L.S/2020 of 1442 H.) was issued, convicting them of violating Article (49) of the Capital Market Law, by intentionally participating in acts and practices that created a false and misleading impression regarding the security of the Company, to create such an impression, through reducing the Company’s losses and inflating its revenues and assets, hence showing untrue financial position of the Company in its financial statements during the financial period ending on 31/12/2013, as well as the financial period ending on 31/03/2014. The main claimant requested to obligate the respondents jointly to compensate the claimants against the losses that resulted from purchase transactions they done on the Company’s share due to such violations.
The above-mentioned decision of ACRSD endorsed the decision of CRSD No. (4222/L/D1/2023 of the year 1444 H.) issued in case No. (233/43) that obliged the respondents jointly to pay the claimants; totaling (318) claimants, the amount of (SR. 19,532,809.48) nineteen million five hundred thirty-two thousand eight hundred nine Saudi Riyals and forty-eight Halalas, in accordance to the entitlement of each one.
The decision also included obliging the respondents to jointly pay the main claimant the amount of (SR. 20,000) twenty thousand Saudi Riyals for lawsuit expenses, and reject other claims.
(To view the details of GS-CRSD announcement, click here )
In this regard, the CMA would like to stress on the importance of what investors’ confidence represents in the growth and prosperity of the financial market. The CMA works continuously to monitor any behavior that violates the Capital Market Law, its implementing regulations and any regulations that the CMA is charged to enforce, find the perpetrators, and complete the necessary procedures to impose deterrent penalties against them. It is within the CMA's efforts that aim at creating an investment environment that is attractive to all categories of investors and safe from unfair or improper practices that involve fraud, deception, misrepresentation, misleading or manipulation.