Rawasi Albina files lawsuits against former CEO, Chairman

Logo of Rawasi Albina Investment Co.

Rawasi Albina Investment Co. filed a lawsuit against former Managing Director and CEO Meteb Alotaibi and Abdullah Alotaibi, seeking a precautionary attachment on real estate owned by the defendants.

In a Tadawul statement, Rawasi Albina said its lawyer filed the lawsuit with the Riyadh General Court to take precautionary measures over properties previously mortgaged in favor of the company, pending completion of a review of the former managing director’s tenure.

The company said the lawsuit aims to protect its and shareholders’ rights and prevent the properties from being disposed of until the dispute is resolved, after the mortgages were released and ownership transferred through a gift.

Rawasi Albina said it cannot currently determine the financial impact, legal implications, or risks of the case and related measures, adding that it will announce any developments in due course.

In a separate statement, the company said its board approved legal and judicial action against former Chairman Marzouk Alotaibi, based on a proposal submitted by managing director Faisal Al Baqmi.

The action relates to a Sept. 6 decision to release SAR 40 million in real estate mortgages and cancel a SAR 25 million promissory note issued by his brother, former Managing Director and CEO Mohsen Alotaibi, which had been obtained to safeguard the company’s and shareholders’ rights.

The action will also cover anyone found responsible for damages incurred by the company, following completion of the legal review and supporting documentation.

The board also appointed an independent specialized professional firm to conduct a comprehensive review of previous operating and investment expenses and financial transactions, after verifying its independence and absence of conflicts of interest.