US Attorney demands Genesco documents
In the continuing saga over the merger of US footwear retailers Genesco Inc. and The Finish line, Genesco has been served with a subpoena from the Office of the US Attorney. The subpoena papers relate to alleged violations of federal fraud statutes following the deal’s financial backer Swiss bank UBS’ decision to seek legal permission to walk away from the deal.
Commenting on the serving of the papers, Genesco’s chairman and chief executive Hal Pennington stated, "The US Attorney subpoena comes on the heels of the baseless fraud allegations made by UBS ten days ago. These allegations are completely without merit and are simply part of UBS' litigation tactics to avoid their contractual obligations; we will fully cooperate with the US Attorney in connection with their inquiry. Most importantly, we will not be deterred from enforcing our rights under the merger agreement."
The merger began to fall apart in August when Genesco reported a loss, which had not been expected by its prospective partner the Finish Line when it agreed the deal in June.
