NEW YORK, Nov. 03, 2026 (GLOBE NEWSWIRE) -- SueWallSt alerts investors in Gildan Activewear Inc. (NYSE: GIL) of a pending securities class action focused on alleged internal control failures and Sarbanes-Oxley certifications at the apparel maker. Class Period: February 19, 2025 through June 15, 2026. Check if you might be eligible to recover your investment losses or contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.
Gildan shares fell $11.63 per share, or 18.7%, on June 16, 2026. That day, a short seller report challenged the sales figures behind annual reports in which management declared its controls effective, including $3,619.2 million in reported 2025 net sales. The Court has set December 14, 2026 as the deadline to apply for lead plaintiff appointment.
"Investors deserve transparency about material risks that could affect their investments, including whether a company's internal controls actually work. The complaint alleges that Gildan's management declared its controls effective in consecutive annual reports while channel stuffing was inflating reported revenue. Shareholders who relied on those assurances may want to review their options," stated Joseph E. Levi, Esq.
What Management Told Shareholders About Its Controls
The action claims the challenged assurances began with the 2024 annual report filed February 19, 2025. In that report, management stated that 'our Chief Executive Officer and our Chief Financial Officer concluded that our internal control over financial reporting was effective as of December 29, 2024.' Attached Sarbanes-Oxley certifications attested to the accuracy of financial reporting and the disclosure of all fraud.
On February 26, 2026, the Company reported that its certifying officers 'concluded that our disclosure controls and procedures were effective as of December 28, 2025.' As alleged, neither filing disclosed that Gildan lacked adequate internal controls.
The Alleged Hanes Blind Spot in the 2025 Review
The 2025 Report disclosed that its controls evaluation excluded HanesBrands LLC, acquired December 1, 2025. Consolidated results nonetheless included $217 million in Hanes net sales and a $17 million net loss. The lawsuit asserts that the Company engaged in channel stuffing relating to Hanes and that the effectiveness statement was misleading because it failed to disclose material issues there.
Why Internal Control Adequacy Matters to Apparel Securities Investors
- Gildan certifies its controls under both Exchange Act Rules 13a-15 and 15d-15 and Canada's National Instrument 52-109, with financial statements prepared under IFRS.
- Hanes alone accounted for $2,470 million in current assets and $3,858 million in non-current assets at fiscal year-end 2025.
- Gildan sells largely to wholesale distributors and screenprinters, a channel the short seller report described as ripe with opportunities for creating the appearance of sales in a given quarter.
- The same report claimed that the three seniormost members of Gildan's Ethics and Fraud Compliance Committee appear to have resigned since the 2024 board refresh.
Learn more about the case or call (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the GIL Lawsuit
Q: What specific misstatements does the GIL lawsuit allege? A: The complaint alleges that Gildan Activewear Inc. made materially false or misleading statements during the Class Period regarding the effectiveness of its internal control over financial reporting and disclosure controls, and regarding its reported net sales. When a June 16, 2026 short seller report questioning the Company's sales practices and organic growth was published, the stock price declined sharply.
Q: How much did GIL stock drop? A: Shares fell approximately 18.7%, a decline of $11.63 per share, after Jehoshaphat Research published a report on June 16, 2026 questioning the Company's organic growth and sales practices. Investors who purchased shares during the Class Period at allegedly artificially inflated prices and suffered losses may be eligible to seek compensation.
Q: Who are the defendants named in the GIL lawsuit? A: The complaint names Gildan Activewear Inc. and individual defendants, including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What documents do I need to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
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 during the Class Period and sold at a loss may still be eligible to participate.
Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Securities class actions are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@SueWallSt.com
Tel: (888) SueWallSt
Fax: (212) 363-7171
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