The scrutiny centers on a June 16, 2026, report by Jehoshaphat Research, which accused the apparel manufacturer of long-term channel stuffing. The short-seller claims Gildan utilized aggressive tactics, including quarter-end pull-forwards and extended payment terms, to artificially bolster its growth narrative. According to the report, distributors are currently holding roughly $510 million in excess inventory, a figure suggesting that Gildan’s reported organic demand and earnings quality may be significantly overstated.

Johnson Fistel, a firm based in San Diego, is now assessing whether these practices misled shareholders and if financial losses incurred by investors are recoverable under federal law. The firm, which reported $90.7 million in recoveries for clients in 2024, is soliciting contact from shareholders who held positions during the period surrounding the Jehoshaphat report. Participation in the investigation carries no upfront cost or obligation for those seeking to understand their legal standing regarding the stock's performance.