Gildan Activewear Faces Securities Fraud Class Action Lawsuit
Shareholders are invited to join a class action lawsuit against Gildan Activewear alleging securities fraud and misleading revenue disclosures between 2025 and 2026.
Legal firm Schall, Brown & Schwartz (SBS) has announced an ongoing class action lawsuit against Gildan Activewear, alleging violations of the Securities Exchange Act. The litigation concerns the period between February 19, 2025, and June 15, 2026, during which the company allegedly misled investors.
The complaint asserts that Gildan failed to maintain sufficient internal controls and engaged in "channel stuffing," a practice of pushing excessive inventory to distributors to artificially inflate revenue figures. The lawsuit claims that these actions created a false impression of the company’s financial health, resulting in investor losses when the actual financial status was disclosed to the market.
Investors who purchased Gildan shares during the designated period have until December 14, 2026, to contact the firm regarding potential lead plaintiff appointments. While the class has not yet been certified, the lawsuit aims to recover damages for affected shareholders.