Fitness financials: Crocs sued again over stock price drop, plus Finish Line, Amer Sports
Crocs was sued again over its stock price drop, Finish Line received a subpoena related to its acquisition of Genesco, and Amer Sports shares have been subscribed for as the result of its exercise of 2002 warrants.
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Crocs sued again over stock price drop
Three more class-action lawsuits have been filed against Crocs (Nasdaq: CROX), accusing executives of misleading shareholders about operations while selling off their own stock for at least $64 million.
The new lawsuits resemble other shareholder lawsuits that allege executives, including CEO Ron Snyder and CFO Peter Case, did not tell shareholders about overseas distribution problems that cost the company about $30 million in third-quarter sales.
The lawsuits say shareholders also did not learn until after the third quarter that inventory of Crocs shoes was building as sales began to slow due to cooler weather.
That news was revealed Oct. 31, when Crocs also reported sales that fell short of predictions, the lawsuit said. The next day, the company’s stock price dropped 36 percent to close at $47.74, the lawsuits said.
All suits were filed in the U.S. District Court for the District of Colorado by the law firms of Wolf Haldenstein Adler Freeman & Herz LLP, Kaplan Fox & Kilsheimer LLP and Schiffrin Barroway Topaz & Kessler LLP.
Finish Line receives subpoena related to acquisition of Genesco
Finish Line (Nasdaq: FINL) said it received a subpoena from federal prosecutors in New York related to its proposed acquisition of Genesco, according to a filing with the SEC.
Finish Line in June agreed to pay $1.5 billion for Genesco, but has since tried to back out of the deal. Finish Line and investment bank UBS AG have stopped closing the deal because of concerns over Genesco’s financial performance.
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.
In a filing with the SEC, Finish Line said, according to the subpoena, if it produces documents relating to the acquisition by Dec. 7 it would 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.
Meanwhile, Genesco, whose store brands include Journeys, Underground Station and Hat Shack, said Thursday its third-quarter profit dropped almost 65 percent, hurt by litigation expenses and weaker demand for its footwear.
Amer Sports exercise of 2002 warrants
A total of 3,495 shares of Amer Sports have been subscribed for as a result of an exercise of its 2002 warrants. The corresponding increase in the company’s share capital amounting to EUR 13,980 (USD $20,678) was registered on Nov. 27. As a result of this increase, Amer Sports’ share capital now totals EUR 289.2 million (USD $427.8 million) and the total number of shares in issue is 72.3 million.
Shareholder rights commenced from the Nov. 27 registration date. The new shares were listed on the Helsinki Exchanges on Nov. 28. The share subscription period will end on Dec. 31.
(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Nov. 27.)
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