NEW YORK CITY, NY / ACCESS Newswire / October 23, 2026 / Levi & Korsinsky, LLP reminds purchasers of Gildan Activewear Inc. (NYSE: GIL) securities of a pending securities class action on behalf of investors who bought between February 19, 2025 and June 15, 2026. YOUR OPTIONS: You may be entitled to compensation without payment of any out-of-pocket fees. Find out if you might qualify for recovery or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

GIL shares lost $11.63 per share, or 18.7%, on June 16, 2026. That day, a short-seller report alleged the apparel maker had extended payment terms to as long as 120 days on distributor orders normally due in 30. Motions for lead plaintiff must be filed with the Court by December 14, 2026.

The Alleged Fourfold Stretch in Apparel Payment Terms

Gildan sells everyday basics such as activewear, underwear and hosiery, much of it in bulk to wholesale distributors and screenprinters. The credit it extends can therefore dictate how much those buyers stock in a given quarter. The action contends Gildan pushed terms from 30 days to 90 and sometimes 120 days so buyers would absorb product well ahead of end-user demand.

As set forth in the complaint, one customer recalled that Gildan's books were managed by ship date, so goods counted toward a quarter if they left a distribution center before it closed. A former employee said that in a quarter's final two weeks, Gildan offered to cover freight that customers normally paid.

Quarter-End Sales Management and Mad Engine

Plaintiffs allege the largest buyers received the biggest pitches. A distributor quoted in the report said Gildan approached Mad Engine, described as probably the biggest direct buyer of blank goods, in the fourth quarter of 2025 with extended terms in exchange for 40 or 50 containers. A separate customer described quarter-end requests arriving "probably every quarter." That customer warned the extra units would shrink its next-quarter orders.

"The complaint raises serious questions about whether investors received accurate information about how Gildan's sales were being generated. If, as alleged, quarter-end volume depended on 90- and 120-day terms and freight concessions rather than end-user demand, shareholders were entitled to know that," said Joseph E. Levi, Esq., managing partner of Levi & Korsinsky, LLP.

Alleged Payment-Term Impact by the Numbers

• 30 days: standard distributor terms, per a distributor cited in the action
• 90 to 120 days: terms allegedly offered to buyers that pulled orders forward
• 3.6 million pieces: a single 50-container buy at 72,000 pieces per container
• $5 million: extra product a former employee said a distributor might be urged to take, with an extra month or two to pay
• About 4X: one customer's account of a quarter-end request measured against its six-week forecast
• Over six months: unpaid Gildan product one distributor was allegedly holding right after Christmas

Gildan has said it is confident its disclosure is accurate and reiterated its fiscal 2026 guidance.

Submit your information now or call (212) 363-7500.

WHY LEVI & KORSINSKY - Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until December 14, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the GIL Lawsuit

Q: How much did GIL stock drop? A: Shares fell approximately 18.7%, a decline of $11.63 per share, after Jehoshaphat Research published a report on June 16, 2026. The report alleged that Gildan had been stuffing distributors with excess product. Investors who purchased shares during the Class Period at allegedly artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What specific misstatements does the GIL lawsuit allege? A: The complaint alleges Gildan Activewear Inc. made materially false or misleading statements during the Class Period. These concerned the effectiveness of its internal controls and disclosure controls, as well as reported net sales that the lawsuit contends were inflated by channel stuffing. When a short-seller report alleging a roughly $500 million product overhang was published on June 16, 2026, the stock price declined sharply.

Q: When did Gildan Activewear Inc. allegedly mislead investors? A: The Class Period runs from February 19, 2025 to June 15, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What documents do I need to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What happens after I contact Levi & Korsinsky? A: An attorney will review your trading history at no cost and provide an initial assessment of your potential eligibility.

Q: What if I already sold my GIL shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

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CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

SOURCE: Levi & Korsinsky, LLP