Gildan Activewear Shares Fall More Than 20 Percent After Research Report
Gildan Activewear shares dropped over 20 percent on June 16, 2026, following a report that alleged channel stuffing and overstated organic growth. A law firm announced it is investigating possible securities law violations tied to the allegations.
thestreet.comGildan Activewear shares fell more than 20 percent on June 16, 2026, after a research report alleged the company had engaged in channel stuffing by shipping excess product to distributors beyond end-user demand. The report claimed this practice created an approximately $500 million product overhang and stated that Gildan's organic growth had been negative for years despite reported revenue increases.
It also referenced certain sales practices, including extended payment terms, as contributing factors. Block & Leviton announced it is investigating Gildan Activewear for potential securities law violations and invited investors who lost money to contact the firm about possible recovery of losses.
Background on the Allegations The investigation notice follows the publication of the research report on the same day. The firm directed investors to its website for additional case details. No company response or regulatory filing was referenced in the announcement.
