SPIMACO says associate company takes legal measures in fraud case

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Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) announced that its board of directors discussed the latest developments on investigation in one of its associate company, during a board meeting held on June 28.

The associate company has started to take the necessary legal measures to ensure the preservation of shareholders' rights, as it filed several lawsuits against the suspects in the competent courts, the firm said in a statement to Tadawul.

Based on the results of the initial investigation, the company did not reach a conclusion on the need to record additional provisions to those previously recorded in the consolidated financial statements as of Sept. 30, 2019, the statement said.

Any material developments will be announced in due course.

In February 2019, SPIMACO announced that a local associate has launched legal and financial investigations into forged client documents, Argaam reported.

At the time, the firm said it is likely to incur a loss of SAR 27 million for 2017. Meanwhile, the financial impact will be fully estimated for 2017 or 2018, if any, upon completion of investigations.

In December 2019, SPIMACO announced that it received the initial findings of investigations into a suspected fraud case in one of its associate companies.