A second shareholder law firm has opened an investigation after Jehoshaphat Research alleged channel stuffing and receivables transfers masked Gildan's underlying demand trends.
Scrutiny of Gildan Activewear Inc. has widened after The Law Offices of Frank R. Cruz said it is investigating possible federal securities law violations tied to the company's June 16, 2026 selloff. The inquiry follows allegations by Jehoshaphat Research that Gildan had been "stuffing the channel to make revenues look like they're growing," cannibalizing future demand and inflating its growth trajectory, while obscuring the issue through financial engineering and by transferring nearly half its receivables off-balance sheet. Gildan's stock fell $11.62, or 18.8%, to close at $50.35 on June 16, 2026, according to the Cruz release. The development adds to an earlier Rosen Law Firm investigation launched after reporting that the short seller had questioned the apparel maker's organic growth and sales practices and disclosed a short position.