Cleveland 6100 Cleveland Inc., a former franchisee of Lake Success, N.Y.-based Staff Builders, is suing Staff Builders for $75 million.

The home health company alleges that Staff Builders engaged in a series of illegal acts that ultimately put it out of business in June 1998.

In addition to breach of contract and fraud charges, 6100 Cleveland filed claims in a U.S. District Court in Cleveland under provisions of the Racketeer Influenced and Corrupt Organizations Act. In the claim, it asserts that Staff Builders attempted to defraud the company out of money it was to receive in royalties.

The lawsuit takes issue with Staff Builders' methods of restructuring to meet interim payment system constraints. 6100 Cleveland, which operated seven agencies throughout Ohio, alleges that the restructuring converted franchises to corporate agencies, putting more than 40 Staff Builders franchises nationwide out of business.

Staff Builders CEO Stephen Savitsky denied 6100 Cleveland's claims. "We have no doubt that the lawsuit and allegations made against Staff Builders by a disgruntled former franchisee are without any merit," he said.