The National reports that two Saudi companies are involved in a lawsuit, one against the other, in a New York court. Why an American court is a question I simply can’t answer.
Saudi group in $10bn lawsuit against Saad
Asa FitchAhmad Hamad Al Gosaibi and Brothers, the indebted Saudi conglomerate, has filed suit in New York against the billionaire chairman and founder of another struggling Saudi conglomerate, claiming US$10 billion (Dh36.87bn) in fraud, according to a newspaper report.
The suit was filed by AHAB against Maan al Sanea, the head of the Saad Group, the Financial Times said yesterday.
According to the London-based newspaper, the suit said Mr al Sanea had “misappropriated approximately $10bn as a result of his frauds”, which allegedly involved forged documents used to obtain loans, the proceeds from which were allegedly diverted into Mr al Sanea’s hands. It also said Mr al Sanea held an executive position in AHAB, where the firm announced the discovery of “substantial financial irregularities” last month.
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July:20:2009 - 22:10
[...] via Saudi Sues Saudi in US Courts | Crossroads Arabia. [...]
July:21:2009 - 02:22
It’s in US courts because the allegedly fraudulent forex transactions involving the 2 companies were processed in New York banks
July:21:2009 - 06:59
Thanks for that. It makes sense, sort of.
July:21:2009 - 07:07
And if I am not mistaken, Al Sanea is a Gosaibi son-in-law. Oops
July:21:2009 - 08:31
Yep, nothing like taking family quarrels to the courts. Though, to be fair, when you’re talking tens of millions of dollars, if not more, a court may provide a better resolution.
July:23:2009 - 01:27
Saudi entities litigate in US courts all the time (and so do companies and individuals from other countries). The state of NY has a couple of statutes specifically designed to attract foreign contract disputants to litigate in NY courts.