Robbins LLP is Investigating Allegations That Gildan Activewear Inc. Included False and Misleading Statements in Its Offering Documents in Support of Its HanesBrands Acquisition
Robbins LLP informs investors that a securities class action has been filed on behalf of former HanesBrands shareholders who acquired common shares of Gildan Activewear Inc. (NYSE/TSE: GIL) in connection with the December 2025 cash-and-stock exchange through which Gildan acquired HanesBrands. Gildan is a global manufacturer of everyday basic apparel, including activewear, underwear and sock products.
The complaint alleges that Gildan violated federal securities laws by providing misleading information in the Offering Materials in support of its HanesBrands Acquisition.
Why Was Gildan Sued?
According to the complaint, in December 2025, Gildan acquired and merged with HanesBrands. The complaint alleges that the Offering Materials contained false and misleading information because:
- even before the merger, Gildan was experiencing severe inventory loading by channel partners, with all the hallmarks of illicit channel stuffing and unsustainable customer demand;
- Gildan’s Days of Sales Outstanding had reached peak levels;
- intermediaries were already overloaded with inventory that would languish on shelves instead of being distributed; and
- the purported synergies and growth metrics emphasized in the Offering Materials were already unrealistic and unattainable.
Plaintiff alleges that this was happening while defendants pulled progressively more sales forward ahead of demand at quarter-ends across distribution channels.
Why Did Gildan's Stock Drop?
The complaint contends that on June 16, 2026, investigative research firm Jehoshaphat Research published a 60-page report that described, among other things, how Gildan had been artificially inflating its revenues through aggressive “channel stuffing” for years to advance short-term growth and pull forward future sales in order to meet revenue and earnings targets. On this and other news, the price of Gildan common shares plummeted over 18%, or $11.63 per share, from $61.97 per share on June 15, 2026 to $50.34 per share on June 16, 2026.
Who May Be Eligible to Participate in the Gildan Class Action?
The lawsuit seeks to represent investors who received Gildan Activewear Inc. (NYSE: GIL) securities in connection with Company's December 2025 cash-and-stock exchange acquisition of HanesBrands. 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.
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