Orpea Jettisons CEO Amid Malpractice Allegations

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By Joshua Kirby

Orpea SA has dismissed its chief executive and appointed a successor with a mission to oversee an investigation into allegations of malpractice that saw the company’s shares lose half their value last week.

The French nursing-home operator said Sunday evening that it had terminated the contract of Yves Le Masne and appointed Philippe Charrier as chairman and CEO. Mr. Charrier has been nonexecutive chairman of the company since 2017, Orpea said.

The new CEO will be entrusted to ensure that best practices are applied throughout the company and to shed full light on accusations of malpractice at Orpea-run homes, relying in particular on assessments made by two independent firms appointed by the company to look into the allegations , the company said.

Shares in then company plunged 16% on Monday of last week when daily Le Monde published extracts of a new book, “The Gravediggers,” that levels accusations of negligence and profit-seeking at Orpea. Shares were suspended at the request of the company, though they continued to fall when they resumed trading the following day, recovering slightly Friday to close the week at 41.88 euros ($46.76).

Orpea has denied the allegations and appointed two firms to carry out independent assessments. The case drew attention from the French government, with a spokesman calling the accusations “absolutely disgusting,” and warning that Orpea should expect strict penalization if they are proved true.

Write to Joshua Kirby at [email protected]; @joshualeokirby

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