Air Methods Corp. (AIRM) on Friday denied allegations by the U.S. Department of Justice that the company discriminated against a National Guardsman.

The department said Thursday it was suing the medical-emergency air transportation company on claims it failed to re-employ Jonathon L. Goodwin of Wasilla, Alaska, after his deployment.

Chief Executive Aaron D. Todd said Friday that Air Methods is working with the department to address the issues in the hope of resolving the case soon. He said that more than 90% of the company's pilots are former military members or on reserve and that Air Methods has the "utmost respect" for servicemen and women.

The Justice Department said Thursday that Goodwin has been a member of the Guard for nearly 20 years "with honorable service as both a fixed-wing and helicopter pilot."

Its complaint says he was a helicopter pilot for Air Methods when he was called up for nine months of active duty, including deployment to Iraq. The department claimed Air Methods refused to accept Goodwin for a contract position at a privately held Alaskan medevac company, LifeMed Alaska, after he returned from active duty. The complaint alleges Air Methods refused his application because of LifeMed's "bias against recently returned service members as well as an unwillingness to accommodate Goodwin's possible future military obligations," according to the department.

The department is suing both Air Methods and LifeMed, claiming they willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994. The act prohibits employers from discriminating against service members and requires them to promptly re-employ those who leave their civilian jobs once they return.

Air Method shares were down 1.3% at $65.34 in recent trading. The stock has nearly doubled in value in the last year.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com
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