Chinalco and Rio Tinto Acquire Controlling Stake in Brazil’s CBA for $903 Million 
Panama Supreme Court Voids CK Hutchison Port Concessions, Raising Geopolitical and Trade Concerns 
Apple Faces Margin Pressure as Memory Chip Prices Surge Amid AI Boom 
CSPC Pharma and AstraZeneca Forge Multibillion-Dollar Partnership to Develop Long-Acting Peptide Drugs 
Climate Adaptation at Home: How Irrigreen Makes Conservation Effortless 
Bob Iger Plans Early Exit as Disney Board Prepares CEO Succession Vote 
Using the Economic Calendar to Reduce Surprise Driven Losses in Forex 
OpenAI Reportedly Eyes Late-2026 IPO Amid Rising Competition and Massive Funding Needs 
American Airlines Plans Return to Venezuela Flights After U.S. Lifts Ban 
Sandisk Stock Soars After Blowout Earnings and AI-Driven Outlook 
Panama Supreme Court Voids Hong Kong Firm’s Panama Canal Port Contracts Over Constitutional Violations 
Amazon Stock Dips as Reports Link Company to Potential $50B OpenAI Investment 
Toyota Retains Global Auto Sales Crown in 2025 With Record 11.3 Million Vehicles Sold 
Trump Threatens Aircraft Tariffs as U.S.-Canada Jet Certification Dispute Escalates 
Apple Forecasts Strong Revenue Growth as iPhone Demand Surges in China and India 
US Judge Rejects $2.36B Penalty Bid Against Google in Privacy Data Case 
Apple Earnings Beat Expectations as iPhone Sales Surge to Four-Year High 
 - EconoTimes)
NEW YORK, May 26, 2017 -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Span-America Medical Systems, Inc. (“Span-America” or the “Company”) (Nasdaq:SPAN) in the United States District Court for the District of South Carolina pursuant to which Span-America will be acquired by Savaria Corporation (“Parent”) through its wholly owned subsidiary, Savaria (SC), Inc. (“Merger Sub”) (collectively, “Savaria”). The Complaint, which alleges violations of the Securities Exchange Act of 1934 against Span-America, its Board of Directors (the “Board”), and Savaria.
On May 1, 2017, Span America’s Board caused the Company to enter into an agreement and plan of merger (the “Merger Agreement”) with Savaria. Pursuant to the terms of the Merger Agreement, Savaria commenced a tender offer (the “Tender Offer”) to purchase all of the issued and outstanding shares of Span common stock for $29.00 in cash per share, or approximately $80 million in total consideration (the “Offer Price”). The Tender Offer is set to expire at 5:00 p.m., New York City Time, on Thursday, June 15, 2017.
The Complaint alleges that the Proposed Transaction is the product of a flawed sales process that favored Savaria at the expense of Span’s shareholders. The Complaint also alleges that the Tender Offer price is grossly inadequate and substantially undervalues Span-America, whereby it is below the mean and median implied values based on Net Sales LTM that Baird calculated for Span; represents a 10.7x Enterprise Value/LTM EBITDA multiple, which is below the 16.9x Enterprise Value/LTM EBITDA from Bloomberg using Span’s Standard Industrial Classification (“SIC”) code; and does not account for the “significant synergies” that exist between Span’s and Savaria’s businesses.
If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
