What Happened?

On June 16, 2026, Jehoshaphat Research published a short report alleging that Gildan had been “stuffing” distributors and customers with excess product beyond underlying end-user demand and had pulled forward approximately $500 million of revenue from upcoming 2026 quarters.

On this news, Gildan’s stock price fell $11.63 per share, or 18.7%, to close at $50.34 per share on June 16, 2026, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.