NEW YORK, May 5, 2017 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Span-America Medical Systems, Inc. ("SPAN" or the "Company") in connection with the proposed acquisition of the Company by Savaria Corporation ("Savaria"). Under the terms of the agreement, SPAN shareholders will receive $29.00 in cash for each share they own.
WeissLaw is investigating whether SPAN's Board acted to maximize shareholder value prior to entering into the agreement. Notably, on the same day as the acquisition announcement, the Company preliminarily reported positive financial results for the second quarter of fiscal year 2017. It announced that it expected an increase of approximately 3% in net sales, from $14.9 million in the same period of the previous year to $15.2 million. It also reported double-digit growth in operating income, from $1.2 million in the second quarter of fiscal year 2016 to $1.4 million, representing a noteworthy 21% increase year over year.
Given these facts, WeissLaw is investigating the Board of Directors' decision to sell SPAN and whether SPAN's Board acted in the best interests of SPAN's public shareholders by actively shopping the Company to maximize shareholder value prior to entering into the agreement with Savaria. If you own SPAN shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at email@example.com.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at firstname.lastname@example.org or fill out the form on our website, http://www.weisslawllp.com/span-america-medical-systems-inc/
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SOURCE WeissLaw LLP