The Capital Market Authority announced the issuance of the CRSD's decision accepting the class action lawsuit filed by an investor against some members of the Board of Directors and employees in Mohammad Al Mojil Group, to claim compensation for the damages suffered as a result of the announcements issued by the company on 22/02/2012 and 21/04/2012, which created a false and misleading impression regarding the company's financial position during that period.

CMA clarified that the approval of the class action lawsuit comes considering the CRSD's approval of the request to register the class action, which was announced on 31/08/2023. This was after the number of requests – which share the same lawful bases and claimed facts as well as having the same subject matter – reached the lawful number that allowed issuing a decision to register a class action.

In the next stage, CRSD will review the accepted applications for joining the class action lawsuit, determining their eligibility for compensation and the amount of compensation due.

It is worth noting that on April 27, 2020, CMA announced the issuance of the final decision of ACRSD in the class action filed by one investor against persons responsible for violations committed in Muhammad Al-Mojil Group (during the company's IPO phase), while announcing on May 31, 2021, the issuance of the ACRSD final decision in the class action lawsuit filed by an investor against persons responsible for violations committed in Mohammad Al Mojil Group (during the period after the company's IPO).

Furthermore, the CMA confirms that it is keen to enforce the Capital Market Law and its implementing regulations to assure an advanced and stable capital market that achieves just, sufficient and transparent security trading. The CMA also assures that the protection of investors in the capital market against unjust and inappropriate practices, which include fraud, deceit, cheating, and manipulation, is among its top priorities. The CMA is constantly working to provide appropriate means and capabilities for investors to exercise their rights and to organize and develop procedures that assure limiting the risks connected to securities dealings, as well as  facilitate litigation procedures for securities dealers and reduce litigation costs, all in a manner that ensures those affected receive their compensation as quickly and easily as possible, aiming to achieve investor protection and reduce risks of investment in the capital market, as well as to enhance its attractiveness.

Details of the announcement can be found published on the website of the GS-CRSD, via the following link:

Announcement of the General Secretariat of CRSD​

​