The scrutiny follows a June 16, 2026, report from Jehoshaphat Research, which claimed Gildan engaged in aggressive sales tactics to pull forward demand. The report, citing interviews with former employees and distributors, argued that these practices cannibalized future revenue to create an illusion of consistent growth. Following the publication of these allegations, Gildan’s stock plummeted from $61.97 to $50.35 per share in a single day.
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Gildan Activewear Faces Securities Fraud Inquiry After Stock Slide
An 18.75% collapse in Gildan Activewear’s share price has triggered a formal investigation by Bleichmar Fonti & Auld LLP. The law firm is probing allegations that the apparel manufacturer artificially inflated revenue through a channel stuffing scheme, potentially misleading investors about the true sustainability of its growth.
BFA Law is examining whether the company’s previous financial disclosures—which attributed success to product innovation and market share gains—were deceptive. Investors who held shares during this period are now being evaluated for potential participation in a class-action lawsuit. The firm operates on a contingency fee basis, meaning shareholders do not bear direct litigation costs. BFA, recognized for its work in large-scale shareholder disputes including recoveries against Tesla and Teva Pharmaceutical, is currently collecting information from affected parties to determine the scope of the potential fraud claims.
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