Bad news is piling up for the private nursing home group Orpea. This Monday, the National Financial Prosecutor’s Office announced that it had opened an investigation for “insider trading” against the former director of the firm. This investigation will make it possible to study the resale of shares of the former CEO of Orpea before the publication of a book-scandal on abuse in nursing homes.
The chained Duck indicated on February 2 that Yves Le Masne, managing director of the group for more than ten years and recently sacked, had sold shares in July for 588,000 euros “only three weeks after the management of Orpea was informed of the publication next to Victor Castanet’s book “Les gravediggers”.
Former CEO denies insider trading
This book accuses Orpea of serious shortcomings in the management of its nursing homes, which the group refutes. In a press release sent to AFP by his lawyer on February 4, Yves Le Masne “strongly refuted any accusation of insider trading”.
The former leader assured that the sale of “about a third of (his) shares” had “nothing to do with this book, which did not create any particular concern for us”. And he clarified that he had “no reason” to sell more shares, “having full confidence in the future of the company”.
“Regulatory” sales
“Mid-summer is when I typically sell shares, as evidenced by my previously released statements” and “I have always made my share sales within the permitted time periods and made all regulatory filings to the authorities competent,” he also said.
In response to the publication of this book, the government announced that it would present proposals by the end of the month to prevent abuse in nursing homes, and that it was launching a “vast control operation” within the Orpea group. .
Double survey on Orpea
The authorities have also announced the opening of a “double administrative investigation” into Orpea, entrusted to the general inspections of social affairs (Igas) and finance (IGF).
In addition, families of residents of Ehpad, employees and unions have approached law firms to try to launch legal actions against various establishments, including Orpea and Korian. The Senate also intends to launch a commission of inquiry.