Logo ofAbdullah A. M. Al-Khodari Sons Co.
The Capital Market Authority (CMA) announced that the Appeal Committee for the Resolution of Securities Conflicts (ACRSC) has issued two rulings obligating the CEO and certain employees of Abdullah A. M. Al-Khodari Sons Co., namely Fawaz Alkhodari, Sohail Sa’eed, and Kailash Sadangi, to pay approximately SAR 85 million to investors who joined the lawsuits filed by one of the investors, according to each claimant’s entitlement as determined by the Committee and upheld on appeal. 
The CMA said the ACRSC had previously convicted the defendants in separate rulings for inflating the company’s revenues in financial statements for fiscal years ending Dec. 31, 2010, through Dec. 31, 2017, which were disclosed between Feb. 16, 2011, and Mar. 31, 2018.
These misstatements misrepresented the annual financial statements, creating a misleading impression of the company’s securities. Subsequent company disclosure before market opening on Feb. 13, 2019, confirmed accumulated losses of 198.52% of capital.
The ACRSC also held the CEO responsible for a company disclosure published on the Tadawul website on June 5, 2018, which contained false statements regarding a material matter, the board’s amended recommendation to the extraordinary general assembly to increase capital via new shares against the company’s liabilities, and omitted disclosure of ten cancelled projects withdrawn from the company between May 30, 2017, and Jan. 31, 2020. These actions were intended to influence the stock price or encourage others to purchase the shares.
The CMA emphasized that investor confidence is the cornerstone of market growth and development. It has worked to enhance litigation tools and their effectiveness, including organizing class-action procedures for disputes involving large groups of investors whose legal positions align and whose claims and regulatory issues are identical.
This approach is compatible with the market’s nature and broad investor base, helping shorten the time required to resolve investor compensation cases, improving committee efficiency, and unifying investor efforts within a more effective and organized procedural framework.
Logo ofAbdullah A. M. Al-Khodari Sons Co.
The Capital Market Authority (CMA) announced that the Appeal Committee for the Resolution of Securities Conflicts (ACRSC) has issued two rulings obligating the CEO and certain employees of Abdullah A. M. Al-Khodari Sons Co., namely Fawaz Alkhodari, Sohail Sa’eed, and Kailash Sadangi, to pay approximately SAR 85 million to investors who joined the lawsuits filed by one of the investors, according to each claimant’s entitlement as determined by the Committee and upheld on appeal.
The CMA said the ACRSC had previously convicted the defendants in separate rulings for inflating the company’s revenues in financial statements for fiscal years ending Dec. 31, 2010, through Dec. 31, 2017, which were disclosed between Feb. 16, 2011, and Mar. 31, 2018.
These misstatements misrepresented the annual financial statements, creating a misleading impression of the company’s securities. Subsequent company disclosure before market opening on Feb. 13, 2019, confirmed accumulated losses of 198.52% of capital.
The ACRSC also held the CEO responsible for a company disclosure published on the Tadawul website on June 5, 2018, which contained false statements regarding a material matter, the board’s amended recommendation to the extraordinary general assembly to increase capital via new shares against the company’s liabilities, and omitted disclosure of ten cancelled projects withdrawn from the company between May 30, 2017, and Jan. 31, 2020. These actions were intended to influence the stock price or encourage others to purchase the shares.
The CMA emphasized that investor confidence is the cornerstone of market growth and development. It has worked to enhance litigation tools and their effectiveness, including organizing class-action procedures for disputes involving large groups of investors whose legal positions align and whose claims and regulatory issues are identical.
This approach is compatible with the market’s nature and broad investor base, helping shorten the time required to resolve investor compensation cases, improving committee efficiency, and unifying investor efforts within a more effective and organized procedural framework.
