Care homes group Korian's shares fall on signs of new legal pressures (updated)

Clariane SE

08/06/2022 08:59

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    PARIS, June 8 (Reuters) - Shares in French care homes
operator Korian  KORI.PA  fell on Wednesday after the Le
Parisien newspaper reported that Korian could face further legal
complaints over the way it handles its care homes.
    Korian shares shed 3.9% in early session trading, the worst
performer on France's SBF-120  .SBF120  equity index, dragging
down the shares of its rival Orpea  ORP.PA  which fell around
1%.
    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 therefore not make
any comment.
    "We make sure that every serious situation brought to our
attention is duly reported to the authorities," it added.
    The shares of Korian and its rival Orpea have fallen sharply
this year after a book by a French investigative journalist in
January alleged there had been severe failings in care in an
Orpea nursing home in a wealthy Paris suburb.  urn:newsml:reuters.com:*:nL5N2XA4H1
    In March, the French government said it planned to file a
criminal complaint against Orpea.  urn:newsml:reuters.com:*:nL2N2VT055
    Orpea responded at the time by saying that while the
government report "does shed light on certain dysfunctions", it
also "allows us to conclude that there is no organised 'system'
that would lead to widespread abuse."

 (Reporting by Sudip Kar-Gupta, Editing by Louise Heavens and
Emelia Sithole-Matarise)
 ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))