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The General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) announces the issuance of the Committee for Resolution of Securities Disputes (CRSD) decision No. 6/L/D1/C/2020 for the year 1442 H. dated 09/04/1442 H. corresponding to 24/11/2020, indicating the acceptance of the request to register the class action lawsuit submitted by an investor against some senior executives in Etihad Etisalat Co. (Mobily), against whom a final decision was issued by the Appeal Committee for Resolution of Securities Disputes (ACRSD) decision No. (1997/L.S/2020) for the year 1442 H. dated 14/01/1442 H. corresponding to 02/09/2020, which was announced on GS-CRSD’s website on 24/02/1442 H., that included their conviction for violating Article (49/a) of the Capital Market Law, for committing acts that created a false and misleading impression regarding the value of the security of Etihad Etisalat Co. (Mobily), by proving misleading and false information in the Company's financial statements for the second, third and fourth quarters of 2013, as well as the first, second and third quarters of 2014. Such incorrect information led to an inflated revenue in the Company's financial statements for those periods.

In addition to that, the class action is filed also against former members of the board of directors of Etihad Etisalat Co. (Mobily), against whom a final decision was issued by the ACRSD decision No. 1462/L.S/2018 for the year 1439 H. dated 10/09/1439 H. corresponding to 25/05/2018, and announced on the website of the Capital Market Authority (CMA) on 12/06/2018, that included their conviction of violating sub-paragraphs (2) and (3) of Article (10/b) of the Corporate Governance Regulations, as well as Article (44) of the Listing Rules, by not carrying out their duties in a manner that serves the interest of the source and not verifying the soundness of the financial and accounting systems related to the preparation of the financial reports, and not ensuring the application of appropriate control systems to manage risks in the Company for the fiscal year ending on 31/12/2013, as well as the first, second and third quarters of 2014.

The claimant requested to register the class action lawsuit with the CRSD and to obligate the respondents to compensate him for the losses resulting from the purchase transactions he made in the Company's shares due to the abovementioned violations.

Furthermore, any person who purchased the Company’s shares after announcing its initial financial results for the second quarter of 2013, which included the misleading and false information on 16/07/2013 and maintained the ownership of such shares until the Company's share was suspended at the end of the trading session on 29/10/2014, (being the last date of trading the Company's share before announcing on 03/11/2014 its preliminary financial results for the third quarter of 2014, and its disclosure of its mistake in the timing of revenue recognition and its adjustment of its financial results for the previous financial periods), has the right to submit a request with the CRSD to join the abovementioned class action lawsuit, within a period of (90) days from the date of this announcement, based on Article (52) of the Resolution of Securities Disputes Proceedings Regulations.

The CRSD will study his request in accordance with lawful procedures, provided that the request is submitted through the CMA via the following link:

Request to Join Class Action Lawsuit