The allegations are that the man, housed at Carema's elderly care home in Korsnäsgården in Falun, in central Sweden, was left to die in front of a television.
"The person in question was not alone at the time of their death," said Jonas Hampus at Falun municipality to the TT news agency.
Hampus also explained that the man died in his apartment, and that he passed away during the night when no television was on. The information has been confirmed by staff records of the night in question.
Korsnäsgården at first responded to the revelations by accusing an intern of breaching a confidentiality agreement.
Over the past couple of weeks, several Carema-run homes have been revealed to have significant flaws, from unchanged diapers to poor working environment. The scandal has led to raised voices for tightened quality control of elderly homes.
According to reports published by the Dagens Nyheter (DN) daily last week two Carema geriatric homes, Norshöjden and Korsnäsgården in Falun, in central Sweden, have been accused of severe flaws.
The Local reported last week on revelations in DN of staff being told to weigh diapers in order to save money.
Further revelations detailed how a "secret" bonus scheme for managers was revealed just days after staff told how savings initiatives have led to neglect of the elderly in their care.
The Local reported on Monday that the scandal has now had financial implications for Carema, a firm which is owned by venture capital firm Triton, after the City of Stockholm announced that it was cancelling its contracts with the firm's subsidiary Carema Care.
In addition to breaking its agreement with Carema, Stockholm city officials plan to launch a broad review of the city's geriatric care.
“We need to be able to guarantee our citizens safe and secure elderly care,” Nordin said.
Sweden's finance minister Anders Borg furthermore announced plans on Monday to close loopholes in the Swedish tax code following criticism that healthcare companies are using complicated schemes to avoid paying taxes in Sweden.