The report, titled "STUFFING ALL OF THE CHANNEL SOME OF THE TIME?," alleges that Gildan coerced distributors into accepting excess inventory at quarter-ends to artificially inflate sales figures. According to Jehoshaphat Research, field interviews with former employees and customers suggest the company utilized aggressive tactics, including extreme payment terms and rebates, to hit quarterly targets. One former employee claimed that sales teams routinely incentivized distributors to pull forward purchases when internal projections fell short of market expectations.

Reed Kathrein, the Hagens Berman partner heading the probe, stated that the firm is scrutinizing the accuracy of these allegations to determine if Gildan engaged in improper revenue recognition. Legal counsel is currently seeking contact from investors who suffered significant losses on the NYSE, as well as individuals with non-public knowledge of the company’s sales practices. The firm is also highlighting the SEC Whistleblower program, which offers potential financial rewards to those providing original information regarding corporate misconduct.