The inquiry follows a June 16, 2026 report by Jehoshaphat Research alleging channel stuffing and off-balance-sheet receivables practices at Gildan Activewear Inc.
Law Offices of Howard G. Smith said it is investigating Gildan Activewear Inc. over possible violations of federal securities laws after a June 16, 2026 report from Jehoshaphat Research alleged the company had been using channel stuffing (shipping excess product to distributors) to make revenue growth appear stronger. The report also said the practice had been “cannibalizing future demand and inflating the overall growth trajectory of [the] business,” was “obscured by financial engineering,” and that Gildan “transfers almost half its receivables off-balance sheet.” Gildan shares fell $11.62, or 18.8%, to close at $50.35 on June 16, 2026, the release said. The law firm said investors who suffered losses or want to learn more about potential claims can contact it to discuss their legal rights.