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Suit Could Cost Gentiva $30M+

Melville, N.Y. Gentiva Health Services will fight a $30 million-plus judgment in an age discrimination lawsuit, officials said.

"We are not pleased - and in fact, are shocked - at the size of the jury verdict," said Michael Johns, vice president of communications. At press time, the company was still assessing its post-trial options.

The verdict - $30 million in punitive damages, $675,000 in compensatory damages and an undetermined amount for attorneys' fees - was returned by a court in Mahoning County, Ohio, against Gentiva's former parent company, Olsten Corp., and Olsten Health Services. Gentiva split from Olsten in March but agreed to assume all liabilities associated with its health services business and also to indemnify Olsten for those liabilities. The judgment stemmed from a lawsuit filed by a single plaintiff in 1998.

In other news, Gentiva reported a net loss for the third quarter ended Sept. 30 of $130.3 million, or $6.30 a share, compared with a net loss of $2.5 million, or 12 cents a share, for the same quarter in 1999.

Also, the company completed the sale of its Canadian home health business to Mississauga, Ontario-based Bayshore Health Group. Terms of the deal were not disclosed. Gentiva also formed a strategic alliance with Eden Prairie, Minn.-based American Telecare to provide services for a diabetes telemedicine project at Columbia University College of Physicians and Surgeons.

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