Continental Medical Systems Inc said its board met to consider the allegations in the derivative action filed by Continental Care Group and that officers named as defendants believe it to be totally without merit is likely to be dismissed in Maryland Federal court. Continental Medical has sued Continental Care Group for over 5 mln dlrs for breach of a contract calling for it to buy 12 nursing homes from Continental Care. Yesterday Continental Care filed a derivative action against Continental Medical charging it with fraud and misrepresentation of fiduciary duties.
CONTINENTAL <CONT.O> BOARD CONSIDERS SUIT