Gildan Activewear (GIL) Securities Fraud Investigation - Levi & Korsinsky

Gildan Activewear shares fell 18.77 after a short-seller report alleged channel-stuffing and approximately $510 million in excess distributor inventory.

NEW YORK, June 24, 2026 /PRNewswire/ -- Gildan Activewear (NYSE: GIL) stock dropped 18.77% intraday on June 16, 2026, after Jehoshaphat Research published a report alleging the Company inflated sales through channel-stuffing practices, with distributors allegedly holding approximately $510 million in excess inventory. Shareholders who lost money on GIL are encouraged to submit their information here . You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

The short-seller report, published while Jehoshaphat disclosed a short position, alleged that Gildan's reported top-line growth masked years of negative organic growth driven by aggressive inventory practices in the distributor channel. Gildan had reported record Q1 2026 net sales from continuing operations of nearly $1.2 billion, up 63.8% over the prior year. CEO Glenn Chamandy characterized distributor channel sales as "healthy" during the Q3 2025 earnings call and stated on the Q1 2025 call that inventory in the channel was "in good balance" with no sign of de-stocking.

Following the report, Gildan reaffirmed FY-2026 guidance and asserted it was "confident that its current disclosure provides its investors with accurate and comprehensive information." CEO Chamandy and CFO Luca Barile had signed certifications in the FY2025 40-F filed February 26, 2026, and the Q1 2026 6-K filed April 30, 2026, attesting that filings contained no untrue statement of a material fact and did not omit any material fact necessary to make the statements not misleading.

If you purchased Gildan Activewear shares and suffered a loss, click here to discuss your legal rights . You may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.

ABOUT LEVI & KORSINSKY, LLP -- Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report.

Frequently Asked Questions About the GIL Investigation

Q: What is the GIL securities fraud investigation about? A: A securities fraud investigation has been initiated concerning Gildan Activewear (NYSE: GIL) regarding potentially materially false and misleading statements. Shares fell over 18% after a short-seller report alleged channel-stuffing and approximately $510 million in excess distributor inventory, causing significant losses for shareholders.

Q: Who is conducting the GIL investigation? A: Levi & Korsinsky, LLP is investigating potential securities fraud on behalf of investors who purchased GIL securities. The firm is nationally recognized, ranked in the ISS Top 50 for seven consecutive years, and has recovered hundreds of millions of dollars for aggrieved investors.

Q: What do GIL investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible to participate in the investigation.

Q: What is a lead plaintiff and why does it matter? A: If the investigation proceeds to legal action, a lead plaintiff is the investor the court appoints to represent the group of affected investors. Lead plaintiffs are typically investors with the largest documented losses. Contacting the firm during the investigation phase preserves that option.

Q: What if I already sold my GIL shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought GIL and sold at a loss may still participate in the investigation.

Q: What does it cost me to participate? A: Nothing. Securities investigations and any resulting actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: Do I need to go to court or give testimony? A: No. Participating in the investigation does not require court appearances or depositions. If legal action is later pursued, the overwhelming majority of affected investors never appear in court either.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP