Bahrain Chamber rejects appeal in Saudi Venture lawsuit: Al-Etihad Insurance

Logo of Al-Etihad Cooperative Insurance Co.

Al-Etihad Cooperative Insurance Co. announced that it was notified yesterday, Aug. 28, by its appointed lawyer in Bahrain that the Court of Cassation rejected the company's appeal against Bahrain Chamber for Dispute Resolution’s (BCDR) ruling in the case filed by the company against the Saudi Venture Capital Investment Co.

In a statement on Tadawul, the company said that the associated costs amounted to BHD 600 in legal fees, to be shared equally with the respondents, and the appeal guarantee of BHD 68,100 was confiscated.

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The company confirmed there is no expected financial impact on its profits and losses related to the investment portfolio and the lawsuit, except for the mentioned costs. It has conservatively recorded the full financial impact based on the worst-case scenario expected in previous financial statements.

Al-Etihad Insurance received on Dec. 3, 2023 a ruling in its lawsuit against Saudi Ventures, with BCDR, according to data compiled by Argaam.

In January 2024, the company announced it had filed an appeal for Cassation in Bahrain against the decision of BCDR.

The lawsuit, related to a financial dispute about a $16.4 million investment, was filed in March 2022.

The dispute concerns the defendant's failure to redeem the amount on its maturity date, citing illiquid investments despite the maturity date passing.

On Aug. 2, 2022, the company received a decision from the General Secretariat of the Committee for Resolution of Securities Disputes, dismissing the case due to lack of jurisdiction.