At least three law firms have opened shareholder class action investigations into Gildan Activewear following a Jehoshaphat Research report on June 16 alleging channel stuffing. Gildan shares fell $11.62, or 18.8 percent, to $50.35 on the day of the report.
Gildan Activewear is facing potential shareholder class actions in the US and Canada after a June 16 report by short-seller Jehoshaphat Research alleged the company inflated revenues through distributor channel practices. The stock fell 18.8 percent that day, closing at $50.35, as multiple law firms announced investigations into possible securities law violations.
What Jehoshaphat Research alleged
The report claimed Gildan had been “stuffing the channel to make revenues look like they’re growing,” a practice the firm argued was “cannibalizing future demand” while concealing structural revenue weakness. According to Jehoshaphat Research, the problem was further obscured by the company transferring nearly half its receivables off-balance sheet.
The allegations contradict a series of statements by Gildan’s CEO Glenn Chamandy across multiple earnings calls over three years. As recently as April 30, 2026, one day before Q1 2026 results described net sales as a company record at nearly $1.2 billion, Chamandy signed certifications in a 6-K filing attesting that interim disclosures contained no material misstatements or omissions.
Shareholder litigation begins to form
Two law firms had opened investigations by June 17. New York-based Levi & Korsinsky LLP is examining whether Gildan made materially false or misleading statements about distributor channel health. Toronto-based Kalloghlian Myers LLP, a firm specializing in investor class actions, opened a parallel investigation in Canada, where Gildan also trades on the TSX. Pennsylvania-based Law Offices of Howard G. Smith also announced an investigation on behalf of US investors.
Now they are calling on shareholders.
