GIL Class Action Notice: Gildan Sued for Securities Fraud After Channel-Stuffing Allegations Lead to 18.75% Stock Drop – Investors Urged to Contact BFA Law

Gildan has been sued for securities fraud after its stock plummeted 18.75% because Gildan allegedly used channel stuffing to create the appearance of revenue and misrepresented its financial results and effectiveness of internal controls.

NEW YORK--(BUSINESS WIRE)--Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Gildan Activewear Inc. (NYSE:GIL) and certain of the company’s senior executives for securities fraud after a significant stock drop resulting from potential violations of the federal securities laws.

If you invested in Gildan, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/gildan-class-action-lawsuit.

Key Details of the Gildan ($GIL) Class Action:

• Lead Plaintiff Deadline: December 14, 2026
• Alleged Misconduct: Securities fraud alleging Gildan used channel stuffing to create the appearance of revenue and misrepresented its financial results and effectiveness of internal controls
• Stock Drop: June 16, 2026 – 18%
• Court: U.S. District Court for the Northern District of New York
• Action: Contact BFA Law to discuss your rights

Investors have until December 14, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Gildan securities. The class action is pending in the U.S. District Court for the Northern District of New York. It is captioned Cortez v. Gildan Activewear Inc., No. 26-cv-02126.

Why is Gildan Being Sued for Securities Fraud?

Gildan is an apparel manufacturer that produces and sells basic clothing to wholesalers, screen printers, and retailers.

According to the complaint, Gildan attributed strong sales results to “share gains in key growth categories,” “strong market response to products introduced . . . which featured key innovations,” and other legitimate business factors. The complaint also alleges that Gildan stated that its internal controls were effective.

As alleged, Gildan engaged in channel stuffing by offering distributors and customers incentives, rebates, paid freight, and extended payment terms to take more inventory than underlying demand supported, including at quarter-end. The complaint alleges that these practices pulled future sales forward, inflated revenue and growth, increased receivables, and left customers with excess inventory. It further alleges that Gildan failed to disclose that it lacked adequate internal controls and that its financial results were materially inflated by the alleged channel stuffing scheme.

Why did Gildan’s Stock Drop?

On June 16, 2026, Jehoshaphat Research published a report titled “Stuffing All of the Channel Some of the Time?” which alleged Gildan “has been stuffing the channel to make revenues look like they’re growing” and that “[t]his pulling-forward of sales has been cannibalizing future demand and inflating the overall growth trajectory of this business.” Jehoshaphat’s allegations are based on interviews with former employees, customers, and distributors, among other things.

On this news, Gildan’s stock dropped $11.62 per share, or 18.75%, from a closing price of $61.97 per share on June 15, 2026, to $50.35 per share on June 16, 2026.

Click here for more information: https://www.bfalaw.com/cases/gildan-class-action-lawsuit.

What Can You Do?

If you invested in Gildan, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/gildan-class-action-lawsuit

Or contact:
Adam McCall
[e-mail]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360, and “SuperLawyers” by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”

BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/gildan-class-action-lawsuit

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