Lawsuit filed in relation to Mobily’s accounting errors

16 Oct 2017

Saudi Arabia’s Capital Markets Authority (CMA) has revealed that the public prosecution has filed a lawsuit in the Committee for the Resolution of Securities Disputes (CRSD) against individuals from the former executive management of telecoms group Etihad Etisalat (Mobily). The legal challenge was filed on suspicion of violating Article 49 of Saudi Arabia’s Capital Market Law, which relates to creating a false or misleading impression of a company’s value.

TeleGeography notes that in November 2014 the CMA launched an investigation into Mobily after the company restated its earnings due to ‘accounting errors’ related to the premature booking of revenue from wholesale broadband leases and mobile promotional campaigns; the restatements were said to have cut SAR1.76 billion (USD469 million) off the profits made by the company.

Saudi Arabia, Mobily (Etihad Etisalat)