The General Secretariat of the Committees for Resolution of Securities Disputes announced the issuance of the decision of the Appeal Committee in Securities Disputes final in the class action lawsuit filed by an investor (the main plaintiff) against some members of the Board of Directors and employees of Weqaya Insurance and Takaful Reinsurance Company, who are responsible for the violations committed on the shares of Weqaya. Takaful Insurance and Reinsurance (Weqaya), against whom the decision of the Appeal Committee in Securities Disputes was issued, convicting the defendants of violating Article (49) of the Capital Market Law, for deliberately participating in actions and actions that created an incorrect and misleading impression regarding the value of the security belonging to the company with the aim of Create that impression, by reducing the company's losses and inflating its revenues and assets, which shows the company's financial position contrary to the truth in the financial statements for the financial period ending on 12/31/2013 AD, and the financial period ending on 03/31/2014 AD, where the chief plaintiff requested to compel the plaintiff They shall jointly compensate the plaintiffs for the losses incurred as a result of the purchases they made on the company's shares as a result of the aforementioned violations.
The decision of the Appeal Committee came in support of the decision of the Committee for the Resolution of Securities Disputes, obliging the defendants jointly to compensate the plaintiffs in the amount of (19,532,809.48) nineteen million five hundred and thirty-two thousand eight hundred and nine riyals and forty-eight halalas, according to the entitlement of each of them and their number is (318) plaintiffs, as included The Appeal Committee’s decision obligated the defendants jointly to pay 20,000 riyals to the main plaintiff as compensation for the lawsuit fees, and other requests were rejected.
In this regard, the CMA would like to stress the importance of what investors’ confidence in the financial market represents for its growth and prosperity, as the CMA works continuously to monitor any behavior that violates the financial market law, its implementing regulations and the regulations that the CMA is competent to apply, arrest the perpetrators, and complete the necessary procedures to impose deterrent penalties against them. In order to enhance the Authority's efforts aimed at creating an investment environment that is attractive to all categories of investors and safe from unfair or improper practices that involve fraud, fraud, misrepresentation or manipulation.
Okaz (Jeddah)