Saudi Arabia's Capital Market Authority announced that the Committee for Resolution of Securities Disputes has approved the registration of a class action filed by an investor against certain members of Raydan Food Company's board of directors and audit committee. The case follows a final decision by the Appeal Committee for Resolution of Securities Disputes that found the defendants violated Article 49(a) of the Capital Market Law by intentionally participating in conduct that created a false and misleading impression of the value of the company's shares. The notice links the violations to Raydan Food's consolidated financial statements for the periods ending 31 December 2018, 31 December 2019 and 31 December 2020. According to the CMA, the defendants approved financial statements despite knowing of violations in them, failed to comply with International Accounting Standard 36 on impairment of assets, did not value all investment effects related to Raydan Food's transactions in Aljonah Company, and failed to recognize losses from declines in asset values or reflect those effects in the accounts, despite an external auditor reservation that was repeated for three consecutive years. The conduct was described as an attempt to influence the company's share price. Investors who bought Raydan Food shares on or after 29 March 2019 and held them until the end of trading on 30 March 2022, when the company announced corrected financial statements, may apply to the Committee for Resolution of Securities Disputes to join the class action within 90 days of the announcement. The committee will review those requests under its procedures.
Saudi Arabia Capital Markets Authority2026-06-02
Saudi Arabia's Capital Market Authority announces approval to register Raydan Food class action and opens 90 day investor join window
Saudi Arabia’s Capital Markets Authority announced that the Committee for Resolution of Securities Disputes has registered a class action by an investor against members of Raydan Food Company’s board and audit committee. The case follows a final decision that they violated Article 49(a) of the Capital Market Law by approving financial statements they knew contained violations, including failure to comply with International Accounting Standard 36 and to recognize asset impairment losses, in an attempt to influence the company’s share price. Investors who purchased Raydan Food shares between 29 March 2019 and 30 March 2022 may apply to join the action.