Robbins LLP is Investigating Allegations that Gildan Activewear Inc. (GIL) Failed to Disclose It Had Inadequate Internal Controls and Was Channel Stuffing

Robbins LLP informs investors that a class action was filed on behalf of all persons who purchased or otherwise acquired Gildan Activewear Inc. (NYSE: GIL) securities between February 19, 2025 and June 15, 2026, inclusive (the “Class Period”). Gildan describes itself as “a leading vertically integrated manufacturer of everyday basic apparel, including activewear, underwear, and hosiery products.”

Why Was Gildan Sued?

Plaintiff contends that during the Class Period, defendants failed to disclose that:  

(1) Gildan did not have adequate internal controls;

(2) Gildan used channel stuffing to create an appearance of revenue; and

(3) as a result, defendants’ statements about Gildan’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all times.

Why Did Gildan Stock Drop?

On June 16, 2026, Jehoshaphat Research (“Jehoshaphat”) published a report in which it announced that it had a short position in Gildan securities (the “Report”). Summarizing the Report, during market hours on June 16, 2026, Investing.com published an article entitled “Gildan Activewear stock falls after short seller report.” The article explained that Jehoshaphat alleged “that Gildan has been ‘stuffing’ its distributors and customers with excess product beyond underlying end user demand. According to the report, this has created a product overhang worth approximately $500 million, which contrasts with consensus forecasts for 2026.”

On this disclosure, Gildan’s shares fell $11.63 per share, or 18.7%, to close at $50.34 on June 16, 2026.

Who May Be Eligible to Participate in the Gildan Activewear Inc. Class Action?

The lawsuit seeks to represent investors who purchased or otherwise acquired Gildan Activewear Inc. between February 19, 2025 and June 15, 2026. Investors who suffered losses during that period may have legal rights under the federal securities laws. Submit a form for information.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.