Saudi Darb: Appeal rejected in SAR 69.2M case against ex-board members

Logo of Saudi Darb Investment Co.

Saudi Darb Investment Co. (formerly Al-Baha Investment and Development Co.) said the Appeal Committee for Securities Disputes rejected an appeal for reconsideration filed by a former board member.

The petition concerned a final ruling ordering six former board members to pay the company a total of SAR 69.2 million in compensation.

In a statement to Tadawul today, Oct. 12, the company said the latest ruling leaves the awarded amount unchanged at SAR 69.2 million, which includes SAR 68.7 million in damages stemming from an asset-swap transaction and SAR 500,000 in legal fees.

The final and legally binding judgment was issued jointly and severally against six former board members who had served from Feb. 10, 2010, to Feb. 9, 2013, and was previously upheld by the Appeal Committee to become fully enforceable.

The company said it continues to pursue enforcement proceedings against the defendants through its legal counsel.

It added that it will disclose any material developments in accordance with the relevant laws and regulations.

According to data available with Argaam, Saudi Darb announced in July that enforcement proceedings had officially commenced before the Riyadh Enforcement Court. The court order mandated the respondents to settle the executive instrument totaling SAR 69.2 million within five days of notification.