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 Maena Investment Co. and 2060 Agricultural Co.

The first decision came after a request filed by an investor against Maena Investment, claiming that the latter advertised on television channels and social media about offering shares for subscription without following the regulatory procedures stipulated in the Rules on Offer of Securities and Continuing Obligations.

The investor subscribed to those shares based on these promotions and requested the registration of the class action with the CRSD, the annulment of the agreement concluded with the company, and demanding the refund of the amounts he paid for his subscription.

The second decision by the CRSD followed another investor’s claim against 2060 Agricultural Co., alleging that the company offered shares without following the regulatory procedures stipulated in the Rules on Offer of Securities and Continuing Obligations, and he subscribed based on that.

The investor requested the registration of the class action with the CRSD, the annulment of the agreement concluded with the Company, and demanding the refund of the amounts he paid for his subscription.

The CMA noted that any person who subscribed in the shares of these companies reserve the right to submit a request to the CRSD to join the aforementioned two class actions within 90 days from the date of this announcement.