CMA accepts class-action against Hamil AlMusk over subscription violations

Logo of The Capital Market Authority (CMA)

The Capital Market Authority (CMA) announced that the Committee for Resolution of Securities Disputes (CRSD) issued a resolution accepting the request to register the class action lawsuit filed by an investor against Hamil AlMusk for Business Services Holding Co.

The class-action was filed as a result of the company's act when it offered its shares for public subscription without following the regulatory procedures and in violation of the rules of Article (31) of the Capital Market Law, the regulator said in a statement.

Any person who had subscribed in Hamil AlMusk shares, has the right to submit a request to 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.

The CRSD will examine the submitted request according to the lawful procedures.

CMA also reaffirmed 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. It emphasized that protecting investors in the capital market from unfair or improper practices involving fraud, deception, or manipulation remains one of its top priorities.

The regulator further stated that it 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.

This should all be done in a manner that ensures those affected receive their compensation as quickly and easily as possible, aiming to achieve investor protection.