MMG Investors Win First Class Action


 Arab News, 1 June 2021: MMG investors have been awarded 40.2 million Riyals and won the Kingdom’s first ever class action.

Executives at the construction company, Mohammad Al Mojil Group and an auditor have been ordered to pay.

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

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

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. (Shutterstock)
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ARAB NEWS
June 01, 2021

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

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.

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