Saudi builder MMG investors win $10mln payout in Kingdom’s first class action

Saudi Arabia introduced a new class action regime in 2017 for claims by shareholders of listed companies in the Kingdom

  
A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.

A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.

REUTERS/Faisal Al Nasser
 
RIYADH: Executives at Saudi builder Mohammad Al Mojil Group (MMG) and an auditor have been ordered to pay SR40.2 million ($10.7 million) to a group of shareholders in the Kingdom’s first investor class action.


It follows a ruling by the General Secretariat of Committees for Resolution of Securities Disputes in the case that involved the manipulation of financial statements to give a false impression of the company following its 2008 IPO and in the three years that followed.

The class action was brought against Adel bin Mohammad bin Hamad Almojil, Fahad bin Ali bin Saad Alraqttan, Ibrahim bin Sa’ad bin Ibrahim Alshuai’r, Sek Choy Choong, Amaar bin Adnan bin Ibrahim Qudoomy, Deloitte & Touche Company and Baker bin Abdullah Abu-alkhai.

Saudi Arabia introduced a new class action regime in 2017 for claims by shareholders of listed companies in the Kingdom.

Copyright: Arab News © 2021 All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Equities