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GMS MANAGEMENT, INC. SETTLES STATE CHARGES

 PHILADELPHIA, Nov. 12 /PRNewswire/ -- GMS Management, Inc., a subsidiary of Geriatric & Medical Companies, Inc. (NASDAQ: GEMC), announced it has reached an agreement with the Pennsylvania Attorney General to settle litigation pending against the company involving two elderly residents who expired at two nursing facilities formerly managed by GMS Management and to terminate all other pending grand jury investigations.
 According to the announcement, the charges brought against the company were based entirely on the alleged negligence of certain employees whose conduct has been vindicated by the courts. Because the courts have already rejected the state's charges against the individuals, and since the company no longer manages the facilities in question, the company decided to bring the protracted litigation to an end by entering a plea of nolo contendere to two misdemeanor counts of involuntary manslaughter and to pay fines and settlement costs associated with those counts.
 Daniel Veloric, chairman and president of the company, said: "In view of the vindication of the individuals by the courts, we determined that it was in the best interest of the company to end this distracting litigation. We also look forward to working with the task force created by the Attorney General to develop improved resources necessary to care for a growing population of senior citizens."
 -0- 11/12/93
 /CONTACT: James J. Wankmiller, Esq., vice president-legal, 215-748-8823; or Stan Froelich of Cameron Associates, 212-644-9560/
 (GEMC)


CO: Geriatric & Medical Companies Inc. ST: Pennsylvania IN: HEA SU:

GK-TA -- NY073 -- 3837 11/12/93 16:02 EST
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Publication:PR Newswire
Date:Nov 12, 1993
Words:250
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