Gildan Faces Class Action Over Alleged Channel Stuffing

Several law firms announced a proposed securities class action against Gildan Activewear and certain executives on behalf of investors who bought shares from February 19, 2025, through June 15, 2026. The complaints allege that Gildan lacked adequate internal controls and used channel stuffing—including excess shipments and extended payment terms—to create an appearance of revenue and pull sales forward, claims the company’s statements about its business and outlook were misleading. The allegations stem from a June 16, 2026, research report that said Gildan had accumulated roughly $500 million in excess product or accelerated sales; Gildan shares fell 18.7% that day. Investors have until December 14, 2026, to ask the court to appoint them lead plaintiff; the claims remain allegations, and the class has not yet been certified.