Korian’s shares down on signs of new legal pressures
Shares in French care homes operator Korian have fallen nearly 9% to €17.04 at the time of writing after the Le Parisien newspaper reported that Korian could face further legal complaints over the way it handles its care homes.
This is the worst performance of Korian’s shares since August 2013.
Le Parisien reported that a French lawyer acting on behalf of relatives of former residents of Korian facilities in France was planning to file complaints against the company.
Korian said in a statement that it was never contacted by the lawyer about those complaints and could not make any comment.
“We make sure that every serious situation brought to our attention is duly reported to the authorities,” Korian added.
Reuters reported this is dragging down the shares of its rival Orpea. Orpea’s shares have fallen around 4% to €24.18.
Overall, the shares of Korian and Orpea have fallen off a cliff this year after journalist Victor Castanet revealed the findings of a three-year investigation in a book titled “Les Fossoyeurs” (“The Gravediggers”), claiming severe failings in hygiene care in an Orpea home in Paris.