Gildan Activewear Faces Class Action Lawsuit Following Allegations of Channel Stuffing
Investors have until December 14, 2026, to file as lead plaintiffs in a securities class action lawsuit against Gildan Activewear Inc. following allegations of channel stuffing and an 18.7% stock decline.
Kahn Swick & Foti, LLC (KSF) has initiated a securities class action lawsuit against Gildan Activewear Inc. The litigation alleges that the apparel manufacturer engaged in 'channel stuffing'—the practice of inducing retailers to purchase excess inventory to artificially inflate quarterly sales figures.
The complaint follows an 18.7% decline in the company's share price, which prompted the legal action on behalf of investors who sustained significant financial losses. The suit asserts that investors were misled by potentially inaccurate financial reporting regarding the company’s sales channels.
Investors who purchased Gildan Activewear stock during the period covered by the allegations have until December 14, 2026, to apply for lead plaintiff status. This deadline marks a critical phase in the legal proceedings as the court prepares to consolidate claims against the corporation.