CMA: Acceptance of Request to Register Class Action Filed by an Investor against Some Members of Board of Directors and Members of Audit Committee in Raydan Food Company

The Capital Market Authority (CMA) announces the issuance of the Committee for Resolution of Securities Disputes (CRSD) decision No. (28/L/D2/C/2026) of 1447 H., dated 25/11/1447 H., corresponding to 12/05/2026, approving the acceptance of the request to register the class action lawsuit filed by an investor against some members of the Board of Directors and members of Audit Committee in Raydan Food Company, against whom the Appeal Committee for Resolution of Securities Disputes' (ACRSD) final decision No. (3341/L.S/2024) of 1445 H., dated 26/11/1445 H., corresponding to 03/06/2024 has been issued, and was published on CMA website on 25/02/1446 H., corresponding to 29/08/2024, for violating Article (49/a) of the Capital Market Law, by intentionally participating in acts and procedures that created a false and misleading impression regarding the value of the security of the Company in an attempt to form such impression when they did not comply with the International Accounting Standard (IAS) No. (36) “Impairment of Assets" approved by the Saudi Organization for Chartered and Professional Accountants (SOCPA), and approving the consolidated financial statements of the Company for the period ending on 31/12/2018, the period ending on 31/12/2019 and the period ending on 31/12/2020, at a time when they previously know the violations contained in such financial statements, as well as not valuating all investment effects that Raydan Food Co. carried out in Aljonah Company, and failing to prove losses that resulted from the decline in the value of the Company's assets, in addition to not reflecting the result of such events on the Company's consolidated financial statements of the Company, despite the expressed reservation made by the Company's external auditor – where such reservation was repeated for three consecutive years; in an attempt to influence the Company's share price in the financial years ending on 31/12/2018, 31/12/2019, and 31/12/2020.
The CMA notes that any person who purchase shares of the Company since 29/03/2019, and maintained ownership till the end of the trading day of 30/03/2022 - being the date of the Company's announcement correcting its financial statements - has the right to submit a request to the CRSD to join the aforementioned class action within (90) days from the date of this announcement, pursuant to Article (57) of the Resolution of Securities Disputes Proceedings Regulations. Additionally, the CRSD will examine the submitted request according to the lawful procedures.
The CMA reaffirms its commitment to investor protection and to enforcing the Capital Market Law and its implementing regulations in a manner that ensures fairness, efficiency, and transparency in securities transactions. The CMA also emphasizes that protecting investors in the capital market from unfair or improper practices involving fraud, deception, or manipulation remains one of its top priorities. The CMA is constantly working to provide appropriate means for investors to exercise their rights, and organize and develop procedures that assure limiting the risks connected to securities dealings, as well as facilitating litigation procedures for securities dealers and reduce litigation costs, all in a manner that ensures those affected receive their compensation as quickly and easily as possible, aiming to achieve investor protection.
Request to Join the Class Action Lawsuit (link)