Sadirat confirms dismissal of case against former executives, considers refiling

Logo of Saudi Industrial Export Co. (Sadirat)

Saudi Industrial Export Co. (Sadirat) announced today, Sept. 30, the court issued a preliminary ruling declaring lack of jurisdiction in the lawsuit against the company's former chairman, board members, and executive management.

In a statement to Tadawul, the company stated that the ruling was appealed before the Court of Appeal, which overturned the ruling and remanded the case to the Commercial Circuit for further consideration.

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The lawsuit later concluded with a ruling dismissing it, and it was upheld by the Court of Appeal.

The company explained that its employees were unaware of the previously dismissed case, which prompted them to contact the company's attorney to determine the feasibility of refiling the case. Moreover, it confirmed its commitment to announce any development pertaining to the matter in due course.

Sadirat announced filing a lawsuit against the company's former chairman and board members and its executive management before the Riyadh Commercial Court in 2017. The case was for violations pointed out by the company's external auditor, according to Argaam data.

These violations represent breaching actions of the company’s former executives and former external auditor (which resulted in allocations of more than 75% of the capital and were recorded in the financial statements for 2014 and 2015) during the board’s term.