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Lead Plaintiff Deadline
Dec 14, 2026
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The filed complaint alleges that Gildan Activewear Inc made materially false and/or misleading statements and/or 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.
Investors who purchased or otherwise acquired Gildan Activewear Inc. securities within the class period described above and suffered losses may be eligible.
If you suffered a loss in Gildan Activewear Inc. during the relevant time frame or pursuant to the relevant offering(s), you have until December 14, 2026 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
● The Allegation: The complaint alleges that Gildan engaged in a channel stuffing scheme, pressuring distributors and customers to take on excess product beyond end-user demand through quarter-end incentives, rebates, and extended payment terms, which allegedly inflated reported net sales and obscured years of negative organic growth while the Company publicly claimed its internal controls were effective.
● The Stock Drop: On June 16, 2026, GIL fell $11.63 per share, or 18.7%, to close at $50.34 per share, after Jehoshaphat Research published a short seller report alleging the Company had been stuffing its distribution channel and had pulled forward roughly $500 million in revenue.
● Class Period & Defendants: The class period runs from February 19, 2025 through June 15, 2026, inclusive. The named defendants are Gildan Activewear Inc., Glenn J. Chamandy (Chief Executive Officer and President), Rhodri J. Harries (Executive Vice-President, Chief Financial and Administrative Officer through January 1, 2026), and Luca Barile (Executive Vice-President, Chief Financial and Administrative Officer from Harries' departure).
● Lead Plaintiff Deadline: December 14, 2026. Investors who wish to seek appointment as lead plaintiff must apply by the deadline.
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Gildan Activewear Class Action Summary |
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Company |
Gildan Activewear Inc. (NYSE: GIL) |
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Lead Plaintiff Deadline |
December 14, 2026 |
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Class Period |
February 19, 2025 – June 15, 2026 |
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Stock Drop |
June 16, 2026 – GIL fell $11.63 (18.7%) to $50.34 |
A securities class action has been filed against Gildan Activewear Inc. (NYSE: GIL). The case covers investors who purchased or otherwise acquired Gildan securities between February 19, 2025 and June 15, 2026.
The complaint alleges defendants made materially false and misleading statements about Gildan's business. It claims the Company used channel stuffing to make its revenue look stronger than it was. The lawsuit cites the short seller's allegation that Gildan's organic growth had been negative for years and obscured by financial engineering.
On June 16, 2026, a short seller report brought these concerns to light. Gildan's stock fell $11.63 per share, or 18.7%, to close at $50.34. Investors who bought during the class period may have suffered losses.
Gildan Activewear Inc. is a vertically integrated manufacturer of everyday basic apparel, including activewear, underwear, and hosiery products. The Company sells to wholesale distributors, screenprinters, and embellishers across North America, Europe, Asia-Pacific, and Latin America, as well as to retailers and global lifestyle brand companies. Gildan is incorporated in Canada with principal executive offices in Montreal, Quebec, and its common shares trade on the New York Stock Exchange under the ticker symbol GIL.
February 19, 2025–June 15, 2026
Investors who purchased or acquired Gildan Activewear Inc. (GIL) securities during the Class Period may be eligible to seek recovery under the federal securities laws.
The complaint centers on Gildan's public representations about its internal controls and reported financial results during the class period. On February 19, 2025, the Company filed its 2024 Form 40-F with SOX certifications signed by Chamandy and Harries concerning the accuracy of financial reporting and required internal-control and fraud disclosures. The 2024 Report to Shareholders separately stated that management concluded internal control over financial reporting was effective as of December 29, 2024.
According to the complaint, those representations were materially false and misleading because Gildan was engaged in a channel stuffing scheme designed to create an appearance of revenue. The lawsuit alleges the net sales figures reported in the 2024 Report were materially inflated as a result. The filing states the same pattern continued with the 2025 Annual Report, filed February 26, 2026, which carried certifications signed by Chamandy and Barile and again represented that disclosure controls and procedures were effective. The complaint alleges this report was also false because of continuing channel stuffing, including channel stuffing relating to HanesBrands LLC, a subsidiary acquired on December 1, 2025, whose material issues were allegedly not disclosed.
The complaint alleges defendants failed to disclose that Gildan did not have adequate internal controls, that it used channel stuffing to create an appearance of revenue, and that as a result its statements about its business, operations, and prospects lacked a reasonable basis. The lawsuit points to defendant Chamandy's prior termination as Chief Executive Officer by the Company's Board of Directors, and his subsequent reinstatement following a proxy contest, as support for the inference that he acted with knowledge or reckless disregard throughout the class period.
On June 16, 2026, Jehoshaphat Research published a report disclosing a short position in Gildan securities and questioning the Company's organic growth and sales practices. According to the report, Gildan's underlying growth had been negative for years despite the appearance of revenue growth, a decline the firm said had been obscured by financial engineering. The report alleged that Gildan had been stuffing its distributors and customers with excess product beyond end-user demand, creating a product overhang worth approximately $500 million and pulling forward roughly $500 million of revenue from upcoming quarters in 2026.
The report cited accounts from former employees, distributors, and customers describing aggressive quarter-end practices. These included offering rebates, favorable or extended payment terms of 90 to 120 days, and other incentives to compel buyers to bring forward purchases, which the sources said allowed Gildan to move sales from one quarter into an earlier one. The report also noted that the channel stuffing problem was concentrated at one distributor sitting on over six months of unpaid Gildan product, and raised concerns about whether Gildan was recognizing revenue upon shipment for transactions resembling consignment arrangements.
The report further questioned Gildan's governance, suggesting the new board installed after the 2024 proxy contest and Chamandy's reinstatement may have been less inclined to oversee management, and noting that all three seniormost members of the Ethics and Fraud Compliance Committee had resigned since the board refresh. Gildan issued a brief press release the same day stating it was confident its disclosures were accurate and reiterating its fiscal 2026 guidance. The complaint alleges that this concise, same-day response, without time to investigate the report's allegations, failed to provide a competing inference to the channel stuffing claims.
On June 16, 2026, following the publication of the Jehoshaphat Research report, Gildan's NYSE-listed shares fell $11.63 per share, or 18.7%, to close at $50.34 on that date. The complaint alleges that this decline reflected the market's reaction to revelations that contradicted the Company's prior representations about its internal controls and reported revenue, and that investors who purchased Gildan securities during the class period suffered significant losses as a result.
● Lead Plaintiff Deadline: December 14, 2026
● After the lead plaintiff deadline, the Court will consider any lead plaintiff motions.
● Defendants may file a motion to dismiss.
● If the case proceeds, the Court may later consider class certification.
Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. Prior results do not guarantee similar outcomes.
The Gildan Activewear securities class action concerns allegations that the Company made materially false and misleading statements about its internal controls and reported revenue between February 19, 2025 and June 15, 2026. According to the complaint, Gildan engaged in a channel stuffing scheme, pressuring distributors and customers to take on excess product beyond end-user demand through quarter-end incentives and extended payment terms. The lawsuit alleges this scheme artificially inflated net sales and obscured years of negative organic growth, while the Company publicly represented that its internal controls over financial reporting were effective.
According to the complaint, channel stuffing refers to pushing excess product onto distributors and customers beyond what end-user demand supports, in order to recognize revenue earlier. The lawsuit cites accounts from former employees, distributors, and customers describing how Gildan allegedly offered rebates, extended payment terms of 90 to 120 days, and other incentives near quarter-end to compel buyers to bring forward purchases. The complaint alleges this allowed Gildan to move sales from one quarter into an earlier one, creating a product overhang worth approximately $500 million.
On June 16, 2026, Jehoshaphat Research published a report disclosing a short position in Gildan and alleging the Company had been stuffing its distribution channel and pulling forward roughly $500 million of revenue. According to the complaint, the report also questioned Gildan's organic growth, governance, and revenue recognition practices. On this news, Gildan's NYSE-listed shares fell $11.63 per share, or 18.7%, to close at $50.34 on June 16, 2026. The complaint alleges this decline reflected the market absorbing information that contradicted the Company's prior statements.
The complaint names Gildan Activewear Inc. along with three individual defendants. Glenn J. Chamandy served as Chief Executive Officer and President throughout the class period. Rhodri J. Harries served as Executive Vice-President, Chief Financial and Administrative Officer from the beginning of the class period until January 1, 2026. Luca Barile has served as Executive Vice-President, Chief Financial and Administrative Officer since Harries' departure, having previously served as CFO of Sales, Marketing and Distribution. The complaint alleges each individual defendant participated in or approved the allegedly false statements.
The complaint notes that Gildan acquired HanesBrands LLC on December 1, 2025. According to the lawsuit, the 2025 Annual Report represented that disclosure controls and procedures were effective, but excluded Hanes from the scope of the evaluation. The complaint alleges defendants engaged in channel stuffing relating to Hanes and failed to disclose material issues at the subsidiary, making the statement materially false and misleading. The Jehoshaphat report also cited an account from a former Hanes employee describing how the apparel distributor channel creates opportunities to generate the appearance of sales in a given quarter.
Investors who purchased or acquired Gildan Activewear Inc. (GIL) securities on the NYSE during the class period, from February 19, 2025 through June 15, 2026, inclusive, may be eligible to seek recovery under the federal securities laws. The complaint defines the class as all persons other than defendants who acquired Gildan securities during this period and were damaged. Excluded from the class are the defendants, Company officers and directors, their immediate families, and any entity in which defendants have or had a controlling interest.
The lead plaintiff deadline is December 14, 2026.
A lead plaintiff is an investor appointed by the Court to represent the interests of the class in a securities class action. Under the federal securities laws, the Court typically selects the lead plaintiff from among class members who apply, often favoring the investor with the largest financial interest who also meets certain adequacy requirements. In the Gildan Activewear case, investors who wish to seek appointment as lead plaintiff must apply by the deadline. The lead plaintiff helps direct the litigation on behalf of all eligible investors.
The complaint alleges Gildan made false and misleading statements about its internal controls and revenue and cites a short seller's claims that channel stuffing inflated net sales and obscured negative underlying growth.
On June 16, 2026, after a Jehoshaphat Research short seller report, GIL fell $11.63 per share, or 18.7%, to close at $50.34.
Investors who purchased Gildan Activewear (GIL) securities between February 19, 2025 and June 15, 2026, inclusive, may be eligible to seek recovery under the federal securities laws.
The lead plaintiff deadline is December 14, 2026.
The defendants are Gildan Activewear Inc., CEO and President Glenn J. Chamandy, former Chief Financial and Administrative Officer Rhodri J. Harries, and current Chief Financial and Administrative Officer Luca Barile.
Deadline
Dec 14, 2026