According to Sky Sport Italia, Genoa believed they had a pre-contract agreement in place with Stroud, only for the player to accept a higher offer from the Championship club instead. The Serie A side's frustration stems from having thought the deal essentially done, prompting the decision to explore legal options against those who represent him.
It is a sharp reversal from where things stood only days earlier, when Genoa appeared close to completing a deal worth an initial €2.2m plus a further €1m in bonuses, with Stroud reportedly having already agreed personal terms on a contract running to 2029, with the option of a further year.
Genoa's pursuit had built steadily over recent weeks, with an opening bid of around €1.6m rejected by Mjallby before an improved offer moved closer to the Swedish champions' valuation.
Stroud's stock had risen sharply on the back of his displays for Sweden at the World Cup, where he held down a starting spot in matches against Japan and France before the team's run ended at the last-32 stage.
He had previously turned down interest from three Championship clubs while waiting for the move to Italy to materialise, underlining how genuine his preference for Serie A appeared to be before Hull's late intervention changed his mind.
Since joining Mjallby from Oddevold in 2023, Stroud has made 104 competitive appearances, scoring 24 goals and adding 14 assists, form that also brought an Allsvenskan title and a Swedish Cup with the club. His contract with Mjallby runs only until the end of this year, giving the Swedish side an incentive to cash in this summer regardless of how the transfer eventually plays out, even with the ill feeling now surrounding the collapsed Genoa deal.
Hull's move represents a significant coup for the Championship club, seeing off both Genoa and other unnamed British suitors to land a player who had appeared destined for Serie A only a week ago.
Terms of the offer have not been disclosed, though it was evidently enough to persuade Stroud to change course late in negotiations, leaving Genoa to count the cost of a deal they had considered all but finished.