KUALA LUMPUR, June 27 ― Australian retirement village operator Aveo linked to Malaysian businessman Lee Seng Huang launched today a buyback of 9 per cent of its stock, after its share price plunged amid claims of elder fraud.

Australian paper The Age reported that the buyback helped curb the losses in the company’s share price today, with the stock dropping more than 5 per cent before recovering to trade 1.5 per cent lower at AU$2.67 (RM8.72) at 12.30pm.

The Age reported that today’s fall followed an 11.5 per cent drop in the company’s share price yesterday after the release of a joint investigation by Australian news outlets Fairfax Media and ABC’s Four Corners into Aveo’s allegedly questionable business practices, including misleading marketing and advertising and property sales, as well as safety issues.

The buyback was reportedly described by stockbrokers as the reaction of a company under siege and purportedly showed that Aveo put shareholders first, according to The Age.

Australian politicians have reportedly urged the Australian government to review the country’s retirement village sector amid the scandal surrounding Aveo, one of the biggest retirement village operators in Australia accused of charging high exit fees and turning over residents for profit.

The biggest investor in Aveo, which runs 89 retirement villages around Australia and houses more than 13,000 retirees, is Malaysian property company Mulpha that owns a 22.6 per cent stake in the retirement village operator. Mulpha is controlled by Lee and his family.