The report, titled "STUFFING ALL OF THE CHANNEL SOME OF THE TIME?," alleges that Gildan compelled distributors to accept excess inventory at the end of fiscal quarters. According to Jehoshaphat, field interviews with former employees and industry partners suggest the company utilized extreme payment terms and rebates to pull forward sales, effectively masking potential shortfalls in market demand. One former employee detailed a culture where the sales team incentivized distributors to stockpile weeks of additional supply to ensure quarterly targets were met.

Following these disclosures, the shareholder rights firm Hagens Berman has launched an investigation to determine if these practices violate federal securities laws. Partner Reed Kathrein stated the firm is currently evaluating the accuracy of the forensic findings and assessing potential damages for investors who purchased shares on the NYSE. The firm is now soliciting information from whistleblowers and investors who suffered significant losses, citing the possibility of SEC whistleblower rewards for those providing original evidence of corporate misconduct.