The scrutiny follows a June 16, 2026, report from Jehoshaphat Research, titled "Stuffing All of the Channel Some of the Time?" The report alleges that the apparel manufacturer pulled forward future sales to inflate current growth metrics, a practice that allegedly cannibalized long-term demand. Following the release of these findings, Gildan’s stock plummeted from $61.97 to $50.35 per share in a single day.

Bleichmar Fonti & Auld is now examining whether Gildan executives misrepresented the drivers of their financial results. While the company previously credited its performance to product innovation and market share gains, investigators are questioning the sustainability of those reported figures. Investors who suffered losses during this period are currently being evaluated for potential participation in a class-action lawsuit.