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Genesco Subpoenaed in Suit With UBS

The U.S. Attorney has sent a subpoena to Genesco requesting documents relating to the Genesco's negotiations and merger agreement with The Finish Line.

ATLANTA—The Office of the U.S. Attorney for the Southern District of New York has sent a subpoena to Genesco Inc. requesting documents relating to the Genesco’s negotiations and merger agreement with The Finish Line. The subpoena states that the documents are sought in connection with alleged violations of federal fraud statutes. 

As Genesco chairman and CEO Hal Pennington said in a statement announcing the subpoena, "The U.S. Attorney subpoena comes on the heels of the baseless fraud allegations made by UBS [Securities] 10 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 U.S. Attorney in connection with their inquiry. Most importantly, we will not be deterred from enforcing our rights under the merger agreement." 

UBS, which is financing the $1.5 billion acquisition of Genesco by The Finish Line, filed a request Nov. 15 to void the agreement, citing Genesco’s “disastrous financial condition” and The Finish Line’s own earnings difficulties. UBS has also accused Genesco senior officers of intentionally misrepresenting the company’s finances, and both The Finish Line and UBS have charged Genesco with not providing requested financial data and access to personnel.