Orpea: Can shareholders obtain compensation for the fall in the stock market course?

In 2022, the title of Orpea (now Emeis) collapsed by more than 90%, resulting in colossal losses for shareholders. A collective of investors intends to obtain compensation in court by proving that the managers and auditors have failed in their duty to information.

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It was not a Monday, nor a black Thursday that the shareholders of Emeis, at the time orpea*known, but a dark year. January 21, 2022, on the eve of the publication of Victor Castanet’s book (Greases: Revelations on the system that mistreats our elders) Questioning the company, the action was negotiated at a course of 5,273 euros. Before falling, following revelations, at 394 euros on December 30 of the same year, a collapse of 92.5%. An endless fall, since the action of Emeis is now acquired around 8 euros.

Result for shareholders: an almost total loss of their investment. Reason why around 800 savers joined the association “Collectif des investors d’Orpea”, with the aim of seizing justice. Something done in late January, with the filing of assignments before the Paris economic affairs court (former Paris Commerce Driver).

Have shareholders been induced?

Small carriers do not always know it, but even being advised that an investment on the stock market always has a risk of partial or total loss in capital, it is possible, in some cases, to obtain compensation to court. Here, the objective of the association, and its lawyers, is to prove that negligence on the part of the managers of the company have misleaded the shareholders: “Since a case law fixed by The Court of Cassation In 2010, shareholders encouraged to invest or keep their participation in a company on the basis of misleading information can request the repair of a loss of chance of better investing their assets elsewhere ”specifies Tristan Girard-Gaymard, one of the lawyers of the collective.

In this case, the assignments to appear concern the former managers of Orpea as well as the auditors. The first, according to Tristan Girard-Gaymard, are “Indeed subject to rules of civil liability by the Commercial Code, and in particular that of managing society in its interest, taking into account the social and environmental challenges of the company, in this case, the goodness of the patients”. Moreover, “The leaders are forced to a duty of diligence and curiosity, therefore to seize the issues that can jeopardize the continuity of the activity. However, Victor Castanet’s book and investigation reports revealed that the administrators were failing in the search for this information ”continues the lawyer.

Concerning the auditors, “They are potentially civilianly responsible for having validated insincing accounting documents, and not to have alerted the bodies which should have known this information (board of directors, shareholders, public prosecutor, etc.)”according to the lawyer. Thus, it is from the angle of the lack of sincerity in the information transmitted to the shareholders that legal action is carried: “The shareholders have invested without being able to know the real and authentic situation of Orpea”estimates Kévin Romanteau, founder of the Collective of Investors of Orpea.

The association therefore intends to obtain compensation for its members, in the double title of financial damage (loss of opportunity to invest elsewhere) and moral damage. “Particular shareholders have seen everything they had invested in retirement, their children, etc. Then were ill -informed throughout the period of restructuring of the company ”, deplores Tristan Girard-Gaymard. A first audience May 15 next must set the procedure calendar, which should spread out Over a period of a year and a half to two years.

*Contacted, the company has not yet responded to our requests