HARTFORD, Conn., Dec. 6, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Middle District of Tennessee on behalf of all persons who purchased the common stock of Genesco, Inc. ("Genesco" or the "Company") (NYSE:GCO) between April 20, 2007 and November 26, 2007, inclusive (the "Class Period").
The Complaint charges that Genesco, and certain of its officers and directors, violated Federal Securities Laws. Specifically, the Complaint alleges that during the Class Period, Defendants concealed the following information, which caused their statements to be materially false and misleading: (i) the Company's stores were not performing well and would not produce the financial results being forecast; (ii) the Journeys stores were performing poorly relative to plan with big same store sales declines; and (iii) these poor results would be considered adverse events to potential acquirers, leading to significant share price declines at Genesco.
As a result of the representations made by Defendants, Genesco was seen as an attractive acquisition target for Foot Locker, Inc. Foot Locker ultimately made an offer and The Finish Line, Inc. and Headwind, Inc., a wholly owned subsidiary of Finish Line, subsequently made an increased offer, based on Genesco's purported success. When the truth about Genesco's results began to be revealed, however, Finish Line indicated it would no longer pursue the acquisition. Then, on November 26, 2007, Genesco received a subpoena from the Office of the U.S. Attorney for the Southern District of New York seeking documents related to its merger agreement and in connection with alleged violations of federal fraud statutes. On this news, Genesco's stock plunged to $25.44 per share on November 27, 2007.
If you are a member of the class, you may, no later than February 4, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.