TMC files lawsuit against SABIC on SAR 34.5M financial differences

TMC is suing SABIC for SAR 34.5 million over alleged shortfalls in contracted medical test volumes between 2019 and 2024

Twareat Medical Care Co. (TMC health) filed a lawsuit against Saudi Basic Industries Corporation (SABIC), seeking SAR 34.5 million,  VAT inclusive, in compensation for financial differences linked to unmet contractual commitments between 2019 and 2024, according to a statement to Tadawul.

The lawsuit, which was brought before the Fourth Circuit of the Commercial Court in Riyadh on Nov. 10, pertains to an agreement for operating eight medical clinics in SABIC’s facilities and subsidiaries.

The agreement stipulates that TMC will conduct a specific number of medical examinations annually for the employees of SABIC and its affiliates, provided that SABIC must compensate TMC for any financial margins if the number of conducted examinations falls below the minimum threshold agreed upon in the contract.

The relevant financial impact, legal implications and associated risks cannot be determined at present. However, if TMC wins the case and collects the claimed amount, a positive financial impact will appear in the company’s financials at the time of the claim receipt.

TMC stated it appointed a law firm to represent it legally, review the case findings, and provide legal advice in accordance with the relevant documents, adding that attempted amicable settlement received no response from SABIC.