Finish Line Subpoenaed in Genesco Deal
New York City, Finish Line Inc. said in a regulatory filing on Thursday that it received a subpoena from federal prosecutors in New York related to its proposed acquisition of shoe retailer Genesco Inc.
Finish Line in June agreed to pay $1.5 billion for Genesco, but has since tried to back out of the deal.
The subpoena from the U.S. Attorney for the Southern District of New York is in response to alleged violations of federal fraud statutes. Genesco also received a subpoena related to the investigation earlier this week.
In a filing with the Securities and Exchange Commission, Finish Line said according to the subpoena, if it produces documents relating to the acquisition by Dec. 7 it will not be required to testify at the grand jury investigation. The company added it is in the process of complying with the subpoena and does not believe that the company or its executives are targets of the investigation.
Separately, a trial is scheduled for next month over whether Genesco's worse-than-expected financial performance since the deal was announced should be considered a "material adverse effect," or a fundamental long-term flaw that would allow the buyers to get out of the deal.