Saudi Arabia's Capital Market Authority announced a final decision by the Appeal Committee for the Resolution of Securities Disputes against 11 board and audit committee members of Middle East Healthcare Company, also known as Saudi German Health, for violating the Capital Market Law and the Market Conduct Regulations by manipulating the company's financial statements between 2018 and 2021. The sanctions total about SAR 18 million and include bans on working for entities supervised by the CMA. The decision found that the individuals inflated the company's revenues and created a false and misleading impression of its book value by recognizing SAR 358,044,138 in revenue despite knowing that collection was unlikely. This led to inaccurate financial statements from the financial year ending 31 December 2018 through the initial financial period ending 30 September 2021, overstating assets and revenues. Individual fines range from SAR 500,000 to SAR 3.1 million. Eight individuals were banned from working in CMA-supervised entities for one year, while three received six-month bans. The final ruling followed coordination between the CMA and other authorities and a public penal lawsuit filed by the Public Prosecution after a March 2024 referral from the CMA. Any person affected by the violations may file an individual or class compensation claim with the Committee for Resolution of Securities Disputes after first filing a complaint with the CMA. The GS-CRSD will publicly announce any class action so that other affected investors can apply to join it.
Saudi Arabia Capital Markets Authority2026-05-21
Saudi Arabia Capital Market Authority announces final sanctions and SAR 18 million in fines against 11 Middle East Healthcare board and audit committee members over financial statement manipulation
The Saudi Arabia Capital Markets Authority reported that the Appeal Committee for the Resolution of Securities Disputes imposed about SAR 18 million in sanctions and employment bans on 11 former board and audit committee members of Middle East Healthcare Company (Saudi German Health) for manipulating financial statements between 2018 and 2021. The committee found they improperly recognized SAR 358,044,138 in revenue, overstating assets and revenues and creating a false impression of the company’s book value. Affected investors may seek compensation through the Committee for Resolution of Securities Disputes after filing a complaint with the CMA.