CMA accepts class-action lawsuits against 2 firms over subscription violations

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The Capital Market Authority (CMA) announced that the Committee for the Resolution of Securities Disputes (CRSD) has issued two resolutions, approving the registration of two class-action lawsuits filed by investors against Sanam Business Holding Co. and Sport Address Business Services Holding Co.

The first decision came after an investor filed a claim against Sanam Business Holding, alleging that the company conducted a marketing campaign to promote the share offering of Sanam Growth Business Services Holding, a subsidiary, without following the regulatory procedures outlined in the Rules on the Offer of Securities and Continuing Obligations.

The investor subscribed to the shares based on that marketing activity and requested that the committee to register the class-action lawsuit, rescind the agreement signed with the company, and obligate the company to return the funds he paid as a result of the subscription.

The second decision by the CRSD followed another investor’s claim against Sport Address Business Services Holding, alleging that the company offered its shares and conducted a marketing campaign to attract investment without complying with the stipulated regulatory procedures. The investor also requested the registration of a class-action lawsuit, termination of the agreement with the company, and refund of the subscription amount he paid based on the non-compliant offering.

The CMA stated that any person who subscribed to the shares of Sanam Growth Business Services Holding or Sport Address Business Services may submit a request to join the two class-action lawsuits within 90 days from the date of this announcement.