France's AMF market regulator has requested the suspension of care homes company Orpea's (ORP.PA) stocks and bonds, the watchdog said on Monday, as Orpea faces legal action over allegations of malpractice at its French retirement homes.
Asked to comment on the AMF's decision, Orpea said in a statement: "At the request of the French financial regulator, Orpea's stock is currently suspended since Monday October 24 before the market open, pending the publication of a press release from the company."
Last month, Orpea - accused of mistreatment of elderly residents and embezzlement of public funds - posted an interim net loss of 269 million euros ($264.9 million), compared with a profit of 102 million euros in the same period last year.
Orpea said in June that an independent audit had found evidence of financial wrongdoing, including inflated labour expenses and suspiciously large payments to third parties, but did not support all the allegations against the company made by "Les Fossoyeurs" (the gravediggers), a book by independent journalist Victor Castanet published earlier this year. Orpea shares last traded at 14.74 euros on Oct. 21. The stock has slumped by around 80% since the start of 2022.
