Shares of care home group Korian fall amid signs of new legal pressure

PARIS, June 8 (Reuters) – Shares in French care home operator Korian (KORI.PA) fell on Wednesday after Le Parisien newspaper reported that Korian could face new legal action over the way which he manages his retirement homes.

Korian shares fell 3.9% in early trading, the worst performance of France’s SBF-120 (.SBF120) stock index, dragging down shares of rival Orpea (ORP.PA) which fell by about 1%.

Le Parisien reported that a French lawyer acting on behalf of relatives of former residents of Korian establishments in France was considering filing a lawsuit against the company.

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Korian said in a statement that he was never contacted by the lawyer about these complaints and therefore could not comment.

“We ensure that every serious situation that comes to our attention is duly reported to the authorities,” he added.

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 serious lapses in care at an Orpea retirement home in an affluent suburb of Paris. Read more

In March, the French government announced its intention to file a criminal complaint against Orpea. Read more

Orpea responded at the time by saying that if the government report “highlights certain dysfunctions”, it “also allows us to conclude that there is no organized ‘system’ which would lead to generalized excesses”.

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Reporting by Sudip Kar-Gupta, editing by Louise Heavens and Emelia Sithole-Matarise

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