Saudi Gazette report

RIYADH — The Capital Market Authority (CMA) announced that the Appeal Committee for Resolution of Securities Disputes (ACRSD) has issued a final ruling requiring three respondents in the Mohammad Al-Mojil Group Company case to jointly and individually pay SR90.8 million to 668 investors who joined the registered class action.

The ruling follows the class action approved by the Committee for Resolution of Securities Disputes (CRSD) on January 11, 2024, which was filed by an investor seeking compensation for losses stemming from company announcements later proven to be incorrect.

According to the ACRSD, the final decision came after the case was referred back to the CRSD to review a petition submitted by one of the respondents. The CRSD issued its decision on March 13, 2025, which became final on April 22, 2025.

The ACRSD ruling obligates Adel bin Mohammad bin Hamad Almojil, Fahad bin Ali bin Saad Alraqttan, and Ibrahim Zadah to compensate affected investors, based on entitlements determined by the CRSD and upheld by the appeals committee.

The case relates to misleading financial statements issued by Mohammad Al-Mojil Group on February 22 and April 21, 2012, covering the company’s 2011 annual results and Q1 2012 results.

These were later proven incorrect following the company’s announcement of Q2 2012 results on September 22, 2012, which revealed discrepancies and created a false impression of the company’s financial position.

The CMA reiterated the importance of safeguarding investor confidence and maintaining a fair, transparent market. It emphasized its continued efforts to detect violations, enforce penalties, and facilitate compensation claims for those harmed by misconduct, ensuring a safe and trustworthy investment environment.