General Secretariat of CRSD Announces Issuance of CRSD Decision to Register the Class Action Filed by Investor against Number of Former Executives in Etihad Etisalat Co. (Mobily)

Further to the announcement of the General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) on 21/04/1442 H. corresponding to 06/12/2020, regarding 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, to accept a request to register the class action lawsuit submitted by an investor against some senior executives in Etihad Etisalat Co. (Mobily), 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, also against former members of the board of directors of Etihad Etisalat Co. (Mobily), as they did not carry 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, which was indicated in the abovementioned announcement;  

The GS-CRSD announces the issuance of the CRSD decision No. 7/L/D1/C/2020 for the year 1442 H. dated 13/05/1442 H. corresponding to 28/12/2020, confirming the registration of the class action lawsuit mentioned above filed by the main claimant after the number of requests – which share the same lawful bases and claimed facts as well as having the same subject matter – reached the lawful number that allow issuing a decision to register a class action.

Furthermore, based on Article (52) of the Resolution of Securities Disputes Proceedings Regulations, any person who purchased the Company’s shares, after it announced on 16/07/2013 its initial financial results for the second quarter of 2013, which included the misleading and false information, 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 it announced on 03/11/2014 its initial financial results for the third quarter of 2014 and disclosed its fault in the timing of revenue recognition and its adjustment of its financial results for the previous financial periods), and had not previously submitted to join this class action, has the right to submit a request with the CRSD to join the abovementioned class action lawsuit within a period of (90) days from 21/04/1442 H. corresponding to 06/12/2020.

The CRSD will study his/her 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