The scrutiny follows a report by Jehoshaphat Research, which disclosed a short position in the Canadian company. The research firm contends that Gildan Activewear’s reported revenue growth is an illusion, sustained by accounting practices that obscure a fundamental downturn in core business performance. Investors who suffered losses following the stock's collapse are now being invited to join a potential class action lawsuit.

Rosen Law Firm, which operates on a contingency fee basis, is currently soliciting participants for the litigation. Founding partner Laurence Rosen and attorney Phillip Kim are managing the inquiry, urging shareholders to review the firm’s track record in securities litigation before selecting counsel. The firm maintains that investors should prioritize representation with proven experience in recovering losses, citing their own history of settlements as a benchmark for potential claimants.