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Rosen Law Firm probes Gildan Activewear after 18.7% June 16 share drop

Rosen Law Firm probes Gildan Activewear after 18.7% June 16 share drop

Hagens Berman has also opened an inquiry after a short seller report alleged channel stuffing and improper revenue recognition, extending legal scrutiny following the stock’s sharp June 16 decline.

Fact Check
The Rosen Law Firm release confirms its investigation and cites an 18.7% June 16, 2026 share drop tied to the Jehoshaphat Research short seller report. The Hagens Berman release confirms its investigation into channel-stuffing and improper revenue recognition allegations. SGB Media independently confirms shares fell ~18.8% on June 16, 2026 following the report. All key claim elements—Rosen probe, 18.7% June 16 drop, Hagens Berman inquiry, and the short seller channel-stuffing/revenue-recognition allegations—are corroborated by primary and independent sources.
Summary

Legal scrutiny of Gildan Activewear Inc. has widened after Hagens Berman opened an investigation into whether allegations by Jehoshaphat Research are accurate and, if so, whether the company violated federal securities laws. The move follows an earlier Rosen Law Firm probe launched after a June 16, 2026 short seller report questioned Gildan’s organic growth and sales practices. In a new release, Hagens Berman said Jehoshaphat’s forensic report accused Gildan of improper channel stuffing and revenue recognition, citing interviews with former employees, customers or distributors who allegedly described efforts to pull forward sales at quarter-end through incentives, extreme payment terms and product shipments not requiring payment until after resale. Hagens Berman said Gildan shares fell more than 18% on June 16, wiping out about $2.15 billion in market value. Rosen had previously cited an 18.7% one-day drop in the NYSE-listed shares. Hagens Berman is seeking information from investors who bought Gildan on the NYSE and from potential whistleblowers with knowledge of the company’s sales practices.

Terms & Concepts
  • channel stuffing: A practice in which a company pushes extra product into distribution channels early to boost reported sales.
  • revenue recognition: The accounting rules that determine when a company can record sales as revenue.
  • short position: A bet that a stock will fall.