Gildan Activewear Inc. shares drop sharply after the publication of a critical forensic report by Jehoshaphat Research. According to reports, the company’s stock falls by more than 18% on June 16, following allegations that Gildan inflates revenue over time through channel stuffing and that aspects of its revenue recognition may be improper. The reports describe the reaction from investors to the findings and the resulting market impact.
In parallel, multiple legal notices announce potential investor actions related to the company. Bronstein, Gewirtz & Grossman, LLC states it is investigating potential claims on behalf of purchasers of Gildan securities and encourages investors to contact the firm. Separately, Kalloghlian Myers LLP also says it is investigating a potential investor class action against Gildan, citing the Jehoshaphat Research report and similar claims about revenue inflation. These notices present the matter as ongoing investigations and do not indicate any final outcome or court finding.
The combined coverage centers on the Jehoshaphat Research allegations, the immediate decline in Gildan’s shares, and the subsequent initiation of attorney investigations into potential investor claims.
