The report, titled "STUFFING ALL OF THE CHANNEL SOME OF THE TIME?", cites interviews with former employees and distributors who allege that Gildan pressured clients to pull forward purchases. Sources described a system of extreme payment terms and inventory incentives designed to meet quarterly guidance, including allowing distributors to defer payments until after they resold the goods.
In response to the market volatility, the shareholder rights firm Hagens Berman has launched an official investigation into the company. Partner Reed Kathrein stated that the inquiry aims to determine whether Jehoshaphat’s findings are accurate and if the company violated federal securities laws through improper accounting. The law firm is currently soliciting information from investors who suffered losses and potential whistleblowers familiar with the company's internal sales operations.





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