Investor’s class-action requests against some Al-Khodari executives approved

Logo of Abdullah A. M. Al-Khodari Sons Co.

The General Secretariat of the Committees for Resolution of Securities Disputes announced the approval of class-action lawsuits filed by an investor against the CEO and some employees at Abdullah A. M. Al-Khodari & Sons Co.

This came following the issuance of two definitive decisions, No. 15/L/D1/J/2024 and No. 16/L/D1/J/2024, dated Dec. 2, 2024, based on prior rulings by the Appeal Committee for Resolution of Securities Disputes.

The defendants were accused of inflating revenue figures in the company’s financial statements for the periods from Dec. 31, 2010, to Dec. 31, 2017.

These misleading statements, published between Feb. 16, 2011, and March 31, 2018, gave a false impression of the company’s financial position.

This was falsified when the company announced on Feb. 13, 2019, that its accumulated losses reached 198.52% of its capital.

The CEO was held responsible for an announcement on June 5, 2018, which included false information about a board recommendation to increase capital by issuing new shares to settle some obligations.

The announcement also failed to disclose the cancellation and withdrawal of 10 projects between May 30, 2017, and Jan. 31, 2020. These actions were allegedly intended to influence the stock price or prompt buy orders.

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The authority noted that these violations led to trading on the company’s stock from Feb. 16, 2011, until its suspension on April 1, 2019.

Misleading financial statements and announcements created a false impression of the company’s financial solvency.

The plaintiff has requested that the committee register the lawsuits and compel the defendants to compensate for losses incurred from stock purchases influenced by these violations.

Those who bought the company’s shares between Feb. 16, 2011, and retained them until Feb. 12, 2019, or purchased shares after Feb. 13, 2019, and held them until the suspension on April 1, 2019, can take part in the cases filed against the defendants.

Eligible individuals must apply within 90 days of this announcement via the Capital Market Authority (CMA) via the provided link.

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