Relief rally proves short-lived for nursing-home operator under fire
LONDON: The nightmare continues for a major stock exchange listed entity as it remains under fire.
The slide in nursing-home operator Orpea continued on Monday, after a brief relief rally from dismissing its chief executive in the wake of malpractice allegations.
Orpea ORP, -3.67% shares rose as much as 10% before turning 7% lower, as it terminated Yves Le Masne as chief executive on Sunday. The company appointed Philippe Charrier, its chairman since 2017, as chief executive. Charrier will oversee the investigation into the allegations made public last week, which will be conducted by two firms.
The book Les Fossoyeurs, or The Gravediggers, has caused a storm in France, alleging both ill treatment of residents and questionable business practices, which the company has denied. The spokesman for the French government called for sanctions of the “greatest severity” if the allegations are proven true.
The stock has now dropped 56% this month. Gladstone Capital Management and Marshall Wace are among the firms short-selling the stock.
