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Twareat Medical Co. (TMC Health) announced that the Preliminary Circuit of the Riyadh Commercial Court issued a preliminary ruling in its favor regarding a lawsuit against Saudi Basic Industries Corp. (SABIC). Under the court decision, SABIC is ordered to pay Twareat SAR 1.03 million in addition to SAR 6,500 for expert fees. However, the court dismissed claims for the 2019-2020 contractual year due to the statute of limitations and declined jurisdiction over VAT claims.
While the financial impact is minimal relative to SABIC's total balance sheet, the ruling highlights legal and contractual exposure risks for major Saudi corporate entities on Tadawul. Court disputes between listed entities and specialized service providers can occasionally influence short-term investor sentiment, though broader fundamentals remain the primary driver for major stocks.
This judgment remains preliminary and subject to potential appeals upon the formal receipt of the judgment instrument. Investors should keep an eye on subsequent Tadawul disclosures from Twareat Medical regarding whether SABIC challenges the verdict or if additional legal proceedings unfold.
