Pill et al v. Henrion et al

Filing 10

MODIFIED ORDER REGARDING THE STIPULATION DISMISSING CASE Signed by Honorable Mary Geiger Lewis on 7/11/2017. (abuc)

UNITED STATES DISTRICT COURT FOR THE
DISTRICT OF SOUTH CAROLINA
GREENVILLE DIVISION
DAVID PILL, Individually and on Behalf of
All Others Similarly Situated,
Plaintiff,
v.
SPAN-AMERICA MEDICAL SYSTEMS,
INC., THOMAS D. HENRION, JAMES D.
FERGUSON, RICHARD C. COGGINS,
ROBERT H. DICK, THOMAS F. GRADY,
JR., DAN R. LEE, DR. LINDA D.
NORMAN, TERRY ALLISON RAPPUHN,
THOMAS J. SULLIVAN, SAVARIA
CORPORATION, and SAVARIA (SC), INC.
Defendants.

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Civil Action No. 6:17-cv-01375-MGL

MODIFIED ORDER REGARDING THE STIPULATION OF DISMISSAL
WHEREAS, on May 25, 2017, Plaintiff David Pill (“Plaintiff”) filed the above-captioned
action (the “Action”) challenging, among other things, the public disclosures made in a
Recommendation Statement on Schedule 14D-9 (the “Recommendation Statement”) filed with the
U.S. Securities and Exchange Commission (the “SEC”) in connection with proposed merger
between Span-America Medical Systems, Inc. and Savaria Corporation (the “Proposed
Transaction”);
WHEREAS, the Action asserts claims for violations of sections 14(d), 14(e), and 20(a) of
the Securities Exchange Act of 1934, breach of fiduciary duty against Span-America Medical
Systems, Inc. (“Span-America” or the “Company”) and the members of the Company’s Board of
Directors (collectively, the “Directors,”), and a claim for aiding and abetting against Savaria

Corporation and Savaria (SC), Inc. (collectively, “Savaria,” and together with the Span-America
and the Directors, “Defendants”);
WHEREAS, on May 26, 2017, Plaintiff filed a Motion for Expedited Discovery and
Expedited Proceedings (the “Motion to Expedite”), seeking an order pursuant to Federal Rule of
Civil Procedure 26: (i) granting limited discovery on an expedited basis, including directing
Defendants to respond to Plaintiff’s request (as outlined in the memorandum of law) for expedited
document discovery within five (5) calendar days of the Court’s order and to make requested
witnesses available shortly thereafter for depositions; and (ii) setting a briefing schedule and
hearing date for Plaintiff’s anticipated preliminary injunction motion to permit sufficient time
before June 15, 2017, which is the scheduled date for the closing of the Tender Offer referenced
in Plaintiff’s Complaint, for the Court to hear and consider that motion;
WHEREAS, on May 30, 2017, the Court entered an Order granting Plaintiff’s Motion to
Expedite;
WHEREAS, on June 5, 2017, Span-America filed an amendment to the Recommendation
Statement that supplemented the Recommendation Statement with certain additional information
relating to the Proposed Transaction that addresses and substantially moots all claims asserted in
this action (the “Supplemental Disclosures”);
WHEREAS, on June 16, 2017, as a result of the closing of the tender offer and completion
of the Proposed Transaction, the Company became an indirect, wholly-owned subsidiary of
Savaria;
WHEREAS, Plaintiff asserts that the prosecution of the Action caused Span-America to
file the Supplemental Disclosures with the SEC and that Plaintiff’s counsel have the right to seek
and recover an award of attorneys’ fees and expenses in connection with a claimed common benefit

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provided to Span-America’s shareholders as a result of the filing of the Supplemental Disclosures
(“Fee Award”), and Plaintiff’s counsel have informed Defendants that, if their claim for a Fee
Award cannot be resolved through negotiations between counsel for Plaintiff and Defendants, then
Plaintiff intends to petition the Court for such fees and expenses (the “Fee Application”), which
Fee Application, if it becomes necessary, shall be filed in the related action captioned Porter v.
Span-America Medical Systems, Inc., Case No. 6:17-cv-01357-MGL;
WHEREAS, Plaintiff believes and contends that the Supplemental Disclosures
substantially mooted the claims set forth in the Complaint, and that remaining claims, if any, are
so unlikely to be successful as to warrant dismissal;
WHEREAS, for the avoidance of doubt, no compensation in any form has passed directly
or indirectly to the Plaintiff or his attorneys and no promise, understanding, or agreement to give
any such compensation has been made, nor have the parties had any discussions concerning the
amount of any Fee Application or Fee Award;
WHEREAS, all of the Defendants in the Action reserve all rights, arguments and defenses,
including the right to oppose any potential Fee Application;
WHEREAS, the parties intend to meet and confer concerning the amount of any Fee
Award, and, in case the parties are unable to reach an agreement, the parties respectfully request
that this Court retain jurisdiction over the prospective Fee Application; and
WHEREAS, no class has been certified in the Action;
WHEREAS, the Defendants have previously denied and continue to deny any wrongdoing
and contend that no claim asserted in the Action was ever meritorious;
NOW, THEREFORE,

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1. Plaintiff hereby voluntarily dismisses the above-captioned action without
prejudice, as to himself, pursuant to Federal Rule of Civil Procedure 41(a), and the
Action shall be so dismissed. The dismissal is as to the named Plaintiff only and
has no effect upon the absent members of the putative class.
2. Consequently, the Court holds this action is hereby DISMISSED WITHOUT
PREJUDICE If the parties fail to reach an agreement concerning the Fee Award
issue within sixty days, however, either party may petition the Court to reopen this
action and restore it to the calendar.
3. By agreement of the parties, the Court retains jurisdiction of the Action solely for
the purpose of determining Plaintiff’s forthcoming Fee Application, if such Fee
Application becomes necessary.
4. The dismissal shall be with prejudice if no action is taken within sixty days from
the filing date of this order.
5. To the extent that the parties are unable to reach an agreement concerning a Fee
Award and if Plaintiff intends to file a Fee Application, such Fee Application shall
be filed in the related action captioned Porter v. Span-America Medical Systems,
Inc., Case No. 6:17-cv-01357-MGL.

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IT IS SO ORDERED.
Signed, this 11th day of July, 2017, in Columbia, South Carolina.

/s/ Mary Geiger Lewis______________
MARY GEIGER LEWIS
UNITED STATES DISTRICT JUDGE

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