Important Notice Regarding Alleged Channel Stuffing Misrepresentations: the lawsuit claims Gildan pulled roughly $500 million in apparel revenue forward from future quarters to create the appearance of organic growth.

NEW YORK, Nov. 4, 2026 /PRNewswire/ — Levi & Korsinsky, LLP notifies investors in Gildan Activewear Inc. (NYSE: GIL) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between February 19, 2025 and June 15, 2026. Find out if you could qualify to recover your losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

According to the lawsuit, roughly $500 million in revenue was pulled forward from upcoming 2026 quarters. The lawsuit asserts channel stuffing securities fraud claims against the basic apparel manufacturer and alleges that reported net sales of $3,270.6 million in 2024 and $3,619.2 million in 2025 were materially inflated by the practice. Applications to serve as lead plaintiff must be filed by December 14, 2026.

The Alleged Channel Stuffing Methodology

Gildan sells activewear, underwear, and hosiery largely through wholesale distributors and screenprinters, a channel where large orders can be timed around quarter-end. The complaint alleges that when sales targets were at risk, the Company pressed distributors and big customers to absorb product well beyond end-user demand. A short-seller report cited in the action suggested Gildan may have recognized revenue at shipment even when customers held goods without paying until they sold through.

How Channel Stuffing Allegedly Affected Reported Financials

The lawsuit contends that Gildan’s revenues would have been declining for the past three years if not for heavy channel stuffing, with headline growth masking negative organic performance. The alleged practice left disproportionately high receivables at successive quarter ends. One distributor was reportedly sitting on more than six months of unpaid Gildan product just after Christmas.

Key Channel Stuffing Securities Fraud Allegations for Shareholders

• Organic growth was allegedly negative for years, obscured by financial engineering and aggressive sales practices.
• A former employee allegedly described sales being moved “from Q2 to Q1,” with the same pattern repeated quarter after quarter.
• A large customer allegedly said quarter-end requests to take extra units came from Gildan alone, not from rivals such as Fruit of the Loom.
• A former Hanes employee allegedly described the printwear distributor channel as a tool that “helped you make your year.”
• The complaint alleges the channel stuffing also extended to Hanes, which Gildan acquired on December 1, 2025.

“This case presents important questions about revenue disclosure obligations in the basic apparel sector, where distributor orders can be shifted across quarter lines. The complaint alleges that reported growth masked years of declining organic sales, and shareholders deserve to know whether those numbers reflected genuine end-user demand.” — Joseph E. Levi, Esq.

Submit your information here or call (212) 363-7500.

WHY LEVI & KORSINSKY: Over the past 20 years, 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: Who is eligible to join the GIL investor lawsuit? A: Investors who purchased GIL stock or securities between February 19, 2025 and June 15, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses — not on whether you still hold the shares.

Q: What specific misstatements does the GIL lawsuit allege? A: The complaint alleges Gildan Activewear Inc. made materially false or misleading statements regarding its reported net sales during the Class Period, which the lawsuit claims were inflated by a channel stuffing scheme. When Jehoshaphat Research published a June 16, 2026 report alleging that Gildan had been stuffing distributors with approximately $500 million in excess product, the stock price declined sharply.

Q: What court was the GIL class action filed in? A: The case was filed in the United States District Court for the Northern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

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 happens after I contact Levi & Korsinsky? A: An attorney will review your trading history at no cost and provide an initial assessment of your potential eligibility.

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 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. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

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.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@levikorsinsky.com

Tel: (212) 363-7500

Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP