INVESTIGATION NOTICE: Hagens Berman Encourages Former HanesBrands Investors Who Received Gildan (NYSE: GIL) Shares in Connection with Gildan's Acquisition of HanesBrands in December 2025 to Contact the Firm

Gildan Activewear lost $2.15 billion in value after channel stuffing allegations surfaced.

What the company is saying

The announcement communicates that Gildan Activewear (NYSE:GIL) is under scrutiny following a critical forensic research report by Jehoshaphat Research, which accuses the company of improper channel stuffing and revenue recognition. The language used is factual, referencing interviews and alleged practices such as pulling forward sales and offering extreme payment terms. The announcement highlights the immediate market reaction—a share price decline of over 18% and a $2.15 billion loss in market capitalization—without offering a company rebuttal or operational context. Hagens Berman, a law firm with a $2.9 billion track record in this area, has opened an investigation, with partner Reed Kathrein quoted to underscore the seriousness of the inquiry. The tone is negative and investigative, emphasizing legal risk and the scale of the financial impact. No attempt is made to downplay the allegations or provide reassurances to investors.

What the data suggests

The only hard numbers disclosed are a share price drop of over 18% and a $2.15 billion reduction in market capitalization, both occurring on June 16 after the Jehoshaphat Research report. These figures indicate a severe loss of investor confidence and a material deterioration in perceived company value. No revenue, profit, or operational data are provided, so the analysis is limited to market reaction rather than underlying business performance. The magnitude of the decline suggests that the allegations were viewed as credible and potentially damaging by the market. There is no evidence presented to confirm or refute the specific claims of channel stuffing or revenue recognition improprieties. The legal investigation by Hagens Berman is noted, but no findings or timelines are disclosed. The data is specific regarding the market impact but incomplete for assessing the company's financial health or the validity of the allegations.

Analysis

The announcement is focused on the disclosure of a critical research report, a sharp share price decline, and the opening of a legal investigation into alleged improper revenue recognition at NYSE:GIL. The tone is negative, but the language is factual and does not exaggerate realised or potential outcomes. Most claims are either direct reporting of events (share price drop, market cap loss, investigation opened) or quotations of allegations, with only one forward-looking statement regarding potential whistleblower rewards. There are no claims of future operational or financial improvement, no capital outlay, and no promises of recovery or growth. The gap between narrative and evidence is minimal, as the announcement refrains from promotional or defensive language and does not attempt to inflate the company's position. No profitability or operational metrics are disclosed, but this is consistent with the nature of the announcement (legal/investigative, not financial results).

Risk flags

• ●Legal risk is elevated due to the opening of an investigation by Hagens Berman into alleged improper revenue recognition and channel stuffing. If substantiated, these allegations could result in regulatory penalties, financial restatements, or litigation costs.
• ●Disclosure risk is high, as the announcement provides no operational or financial data beyond the market reaction, leaving investors without insight into the company's underlying performance or management's response to the allegations.
• ●Reputational risk is material, with the public nature of the allegations and the sharp market reaction potentially impacting customer, distributor, and supplier relationships, as well as future investor confidence.

Bottom line

This announcement signals a major reputational and legal challenge for Gildan Activewear, with a swift $2.15 billion market cap loss and an 18% share price drop following credible allegations of channel stuffing. The absence of operational data or a management response leaves investors with little basis to assess the underlying business or the likelihood of the allegations being substantiated. The legal investigation by a firm with a $2.9 billion track record underscores the seriousness of the situation, but no timeline or likely outcomes are disclosed. Investors face heightened uncertainty, with the risk of regulatory action, financial restatements, or further value erosion if the allegations prove true. Until more information emerges from the investigation or the company provides a substantive response, the main takeaway is that the downside risk is real and near-term clarity is unlikely.

Announcement summary

(NYSE: GIL) Gildan Activewear investors saw the price of their shares in the activewear apparel company tumble over 18% on June 16 after Jehoshaphat Research published a critical forensic research report accusing Gildan of having engaged in improper channel stuffing. This news wiped out $2.15 billion from the company's market capitalization. Hagens Berman has opened an investigation into whether Jehoshaphat's allegations are accurate and, if so, whether Gildan may have violated the federal securities laws. Jehoshaphat said it compiled "field evidence" consisting of interviews with former employees, customers, or distributors that, in part, led the firm to conclude Gildan has engaged in improper channel stuffing and revenue recognition. The sources reportedly "described some version of GIL 'asking for help' from or even 'compel[ling]' its customers to pull forward sales at quarter-ends, including by offering extreme payment terms[.]" Hagens Berman's team has secured more than $2.9 billion in this area of law. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.

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