Investigation Launched into Gildan Activewear Following Share Price Plummet

Investigation on Gildan Activewear Due to Significant Share Price Fall

In recent developments, Gildan Activewear (NYSE: GIL) has found itself at the center of scrutiny after its shares significantly plummeted, losing over 18% on June 16, 2026. This sudden drop in share value amounted to a staggering $2.15 billion loss in market capitalization, raising alarms among investors and prompting legal investigations.

The decline followed the release of a critical forensic research report by Jehoshaphat Research, which accused Gildan of engaging in improper channel stuffing practices. These allegations directly challenge the company's prior assurances that its financial statements adhered to applicable accounting standards, particularly those governing revenue recognition.

Allegations Against Gildan

The report titled “STUFFING ALL OF THE CHANNEL SOME OF THE TIME?” outlined worrying claims based on interviews with former employees, customers, and distributors. According to Jehoshaphat, the evidence suggested that Gildan had pressured its customers to accelerate purchases at the end of fiscal quarters—a method known as channel stuffing. This tactic reportedly involved offering enticing payment terms to encourage customers to bring forward their purchases, sometimes even deferring payments until after the customers had resold the products.

A former Gildan employee disclosed that when there were concerns about hitting projected sales targets, the sales team would resort to incentivizing distributors with attractive rebates or more favorable payment terms as a means to generate sales revenue through these aggressive sales practices.

In light of the serious nature of these claims, the national shareholder rights firm Hagens Berman is taking action by initiating an investigation to verify the accuracy of Jehoshaphat’s statements and determine if Gildan violated federal securities laws. Reed Kathrein, the Hagens Berman partner overseeing the inquiry stated, “Our investigation is focused on whether Jehoshaphat's analysis is accurate and, if so, whether Gildan has engaged in improper revenue recognition practices.”

Calling on Affected Investors

Hagens Berman is encouraging investors who suffered substantial losses after purchasing shares of Gildan on the NYSE to come forward. The firm is also reaching out to individuals who possess information regarding the company’s sales practices. Anyone affected is urged to contact the firm to discuss the possibility of filing claims for recovery. The firm has also highlighted the protections available for whistleblowers who may have non-public information to share regarding Gildan's practices. Under the SEC’s whistleblower program, individuals providing original information can stand to gain rewards of up to 30% of any successful recovery made by the SEC.

About Hagens Berman

Hagens Berman is recognized for its role as a plaintiffs’ rights complex litigation firm, emphasizing corporate accountability. With a significant track record, the firm has successfully represented investors, workers, consumers, and whistleblowers, securing more than $2.9 billion in related litigations. The firm advocates for those harmed by corporate negligence and continues to keep the public informed through ongoing updates.

Investors holding knowledge about this situation or who have suffered losses related to Gildan's recent misleading practices are encouraged to reach out to Hagens Berman for personal consultations. Further information about this investigation and additional details can be found at www.hbsslaw.com/investor-fraud/gil.

In conclusion, investors should stay informed about the unfolding investigation and be prepared to act if they find themselves impacted by Gildan’s alleged irregular practices.