TMC sues SABIC over SAR 34.5M financial differences

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

Twareat Medical Care Co. (TMC health), listed on the Nomu-Parallel Market, filed a lawsuit against Saudi Basic Industries Corp. (SABIC).

The lawsuit was filed in the Fourth Circuit of the Commercial Court in Riyadh on Nov. 10, and TMC is asking for SAR 34.51 million, including VAT, as compensation for financial issues related to unmet contract obligations from 2019 to 2024.

In a statement to Tadawul, the company explained that the lawsuit relates to an agreement for operating eight medical clinics in SABIC’s facilities and subsidiaries. The agreement stipulated 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 impact will appear in the company’s financials at that time.

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 the attempted amicable settlement received no response from SABIC.