Gildan Activewear Faces Securities Class Action Lawsuit Over Revenue Claims
Gildan Activewear investors have filed a class action lawsuit alleging the company engaged in fraudulent sales practices and misrepresented its financial health.
Kessler Topaz Meltzer & Check, LLP has initiated a securities class action lawsuit against Gildan Activewear Inc. in the U.S. District Court for the Northern District of New York. The litigation targets claims made between February 19, 2025, and June 15, 2026.
The complaint alleges that Gildan utilized a "channel stuffing" scheme, intentionally overstocking distributors to artificially inflate revenue figures. Plaintiffs argue that these actions, coupled with inadequate internal controls, resulted in materially misleading statements regarding the company's growth and business prospects.
Scrutiny intensified on June 16, 2026, when a report by Jehoshaphat Research detailed these practices, causing Gildan’s stock to drop by 18.7%. Investors who sustained losses during the class period have until December 14, 2026, to apply for lead plaintiff status in the ongoing litigation.