The Committee for the Resolution of Securities Disputes in Saudi Arabia issued a preliminary ruling against 5 Mobily executives, which provided for the compensation of 1,045 shareholders who were affected by actions that created an erroneous and misleading impression on the value of Mobily’s shares.
A decision was issued by the Securities Dispute Resolution Committee to force executives to jointly pay plaintiffs an amount of 1.225 billion riyals in according to the law of each of them – and their number is 1,045.
The sentence follows the conviction of the accused in a class action against them, for their acts that created an erroneous and misleading impression on the value of Mobily’s securities by revealing misleading and incorrect data in the company’s financial statements during the quarters of 2013-2014 which led to an increase in revenues in the company’s balance sheet, according to the Saudi newspaper “Mal”.
According to the disclosure of the data of the shareholders who were compensated, the amounts of compensation awarded to them varied, as 112 shareholders received compensation that exceeded one million riyals of the total shareholders to whom compensation was issued, while the rest was was less than one million riyals, including one shareholder who was awarded a compensation of only 69 riyals.
According to the monitoring, two shareholders were compensated with compensation in excess of 100 million riyals, where the first received a compensation of over 164 million riyals, while the compensation of the second, endowment institution for humanitarian works – in terms of volume of issued compensation amounts – amounted to more than 113.8 million riyals.
To view the full names of the payees, click here
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