SAN FRANCISCO, July 1, 2026 /PRNewswire/ — Gildan Activewear (NYSE: GIL) investors saw the price of their shares in the activewear apparel company tumble over 18% on June 16 after Jehoshaphat Research published a critical forensic research report accusing Gildan of having engaged in improper channel stuffing. This news wiped out $2.15 billion from the company’s market capitalization.
These developments have prompted national shareholder rights firm Hagens Berman to open an investigation into whether Jehoshaphat’s allegations are accurate and, if so, whether Gildan may have violated the federal securities laws.
The firm encourages Gildan investors who purchased shares on the NYSE only and suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge about Gildan’s sales practices to contact the firm’s attorneys.
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Gildan Activewear Inc. (GIL) Investigation:
Gildan consistently has assured investors that its financial statements comply with applicable accounting rules, including those governing proper revenue recognition.
The company’s assurances may have come into question on June 16, 2026. That day, Jehoshaphat Research published a critical short report, “STUFFING ALL OF THE CHANNEL SOME OF THE TIME?” Jehoshaphat said it compiled “field evidence” consisting of interviews with former employees, customers, or distributors that, in part, led the firm to conclude Gildan has engaged in improper channel stuffing and revenue recognition.
The sources reportedly “described some version of GIL ‘asking for help’ from or even ‘compel[ling]’ its customers to pull forward sales at quarter-ends, including by offering extreme payment terms[.]” The firm’s sources also reportedly “described a practice in which GIL is understood to be providing product to distributors & customers but not requiring payment until after the customer has resold it.”
Jehoshaphat also reported that a former Gildan employee divulged that “[i]f there was a sense that we might not hit the sales numbers that we had communicated to the market, the sales team would offer incentives to the distributors to take on more weeks of supply than they normally had, or rebates at the end of the quarter, or more favorable payment terms[]” and “[t]hese are all mechanisms that were used to compel the distributors to bring forward some purchases.”
“Our investigation is focused on whether Jehoshaphat’s analysis is accurate and, if so, whether Gildan has engaged in improper revenue recognition practices,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Gildan on the NYSE and have substantial losses, or have knowledge that will assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to other frequently asked questions about the firm’s Gildan investigation, read more »
Whistleblowers: Persons with non-public information regarding Gildan should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email GIL@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP
