The Capital Market Authority (CMA) announced that the Appeal Committee for Resolution of Securities Disputes (ACRSD) approved the registration of a class action lawsuit filed by an investor against certain board members and audit committee members of Raydan Food Co.
The lawsuit stems from a final ruling issued in August 2024, which found the defendants in violation of Article 49(a) of the Capital Market Law for intentionally participating in acts and practices that created a false and misleading impression of the value of the company’s shares.
According to the ruling, the violations involved approving Raydan’s consolidated financial statements for 2018, 2019, and 2020 despite non-compliance with IAS 36 (Impairment of Assets).
This included failing to assess the impact of the company’s investment in Al Gouna, not recognizing impairment losses, and not reflecting their effects in the financial statements, despite repeated auditor qualifications.
CMA said investors who purchased Raydan shares between March 29, 2019, and March 30, 2022, and held them until the close of trading on March 30, 2022—the date of the company’s corrective disclosure—may apply to join the class action within 90 days from the date of the CMA’s announcement.
Applications must be submitted through its website in accordance with Article 57 of the Rules of Procedure for the Resolution of Securities Disputes. The Committee will review all applications received in line with the applicable regulatory procedures.
The final ruling issued in 2024 convicted 14 current and former board members and employees, including the chairman, and ordered them jointly to pay more than SAR 77 million in avoided losses, in addition to fines totaling SAR 50.6 million.
The CMA reaffirmed its commitment to protecting investors, enhancing market transparency, combating fraud and manipulation, and facilitating compensation procedures for affected investors.
The CMA reiterated that protecting investors from unfair practices involving fraud, deception, or market manipulation remains a key priority.
The authority continues to enhance mechanisms that enable investors to exercise their rights, while developing procedures aimed at reducing risks associated with securities transactions, streamlining litigation processes, and lowering related costs. These efforts help ensure that affected investors can obtain compensation as quickly and efficiently as possible.
The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) Announcement (Link)
Application to Join the Class Action Lawsuit (Link)
Frequently Asked Questions (FAQ) Document (Link)
The Capital Market Authority (CMA) announced that the Appeal Committee for Resolution of Securities Disputes (ACRSD) approved the registration of a class action lawsuit filed by an investor against certain board members and audit committee members of Raydan Food Co.
The lawsuit stems from a final ruling issued in August 2024, which found the defendants in violation of Article 49(a) of the Capital Market Law for intentionally participating in acts and practices that created a false and misleading impression of the value of the company’s shares.
According to the ruling, the violations involved approving Raydan’s consolidated financial statements for 2018, 2019, and 2020 despite non-compliance with IAS 36 (Impairment of Assets).
This included failing to assess the impact of the company’s investment in Al Gouna, not recognizing impairment losses, and not reflecting their effects in the financial statements, despite repeated auditor qualifications.
CMA said investors who purchased Raydan shares between March 29, 2019, and March 30, 2022, and held them until the close of trading on March 30, 2022—the date of the company’s corrective disclosure—may apply to join the class action within 90 days from the date of the CMA’s announcement.
Applications must be submitted through its website in accordance with Article 57 of the Rules of Procedure for the Resolution of Securities Disputes. The Committee will review all applications received in line with the applicable regulatory procedures.
The final ruling issued in 2024 convicted 14 current and former board members and employees, including the chairman, and ordered them jointly to pay more than SAR 77 million in avoided losses, in addition to fines totaling SAR 50.6 million.
The CMA reaffirmed its commitment to protecting investors, enhancing market transparency, combating fraud and manipulation, and facilitating compensation procedures for affected investors.
The CMA reiterated that protecting investors from unfair practices involving fraud, deception, or market manipulation remains a key priority.
The authority continues to enhance mechanisms that enable investors to exercise their rights, while developing procedures aimed at reducing risks associated with securities transactions, streamlining litigation processes, and lowering related costs. These efforts help ensure that affected investors can obtain compensation as quickly and efficiently as possible.
The General Secretariat of the Committees for Resolution of Securities Disputes (GS-CRSD) Announcement (Link)
Application to Join the Class Action Lawsuit (Link)
Frequently Asked Questions (FAQ) Document (Link)
