Saudi Arabia’s Capital Market Authority (CMA) has halted trading in Etihad Etisalat’s (Mobily’s) shares, until it gets a response from the telecoms operator on the ongoing lawsuit filed by some of Mobily’s shareholders for compensation for the losses they suffered as a result of the financial statements released by the company. In a press release published on the Tadawul’s website shortly after, Mobily said that the Committee for Resolution of Securities Disputes (CRSD) found no violation of the company’s statutory share listing obligations, as it had published its annual financial statements after they had been approved by the board of directors, in line with Article 42 of the Listing Rules. As such, the CRSD rejected the demands of the claimants for compensation.
As previously reported by TeleGeography’s CommsUpdate, in November 2014 the CMA launched an investigation into Mobily after the company restated its earnings for an 18-month period due to ‘accounting error’. In March 2015 the CMA assigned a specialised team to review Mobily’s newly restated financial statements and all other related documents, following an investigation to determine any violations by the company towards the bourse rules.