The Rosen Law Firm has renewed its call for Gildan Activewear Inc. (NYSE: GIL) shareholders to join a prospective securities class action. The firm continues to investigate allegations that the company issued materially misleading business information.

This update follows the firm’s formal investigation launch on August 26, 2026. On September 6, 2026, Rosen Law Firm published a press release encouraging affected investors to inquire about their rights. The firm is preparing a class action seeking recovery of investor losses resulting from the alleged misconduct.

Investigation Background

The scrutiny intensified after short seller Jehoshaphat Research published a report on June 16, 2026. Titled "Stuffing All of the Channel Some of the Time?", the report alleged that Gildan obscured negative organic growth through financial engineering. The research firm claimed the company’s organic growth had been negative for years despite appearing to show revenue growth.

On this news, Gildan’s shares fell 18.7% on June 16, 2026. The stock price dropped $11.62 per share from $61.97 on June 15, 2026, to $50.35 on June 16, 2026.

Legal Landscape and Market Reaction

Multiple law firms have initiated actions against Gildan. Robbins LLP filed a class action targeting former HanesBrands shareholders who acquired Gildan common shares during the December 2025 cash-and-stock exchange. Bleichmar Fonti & Auld LLP announced a securities fraud investigation on September 2, 2026, and launched a formal investigation on August 26, 2026.

What the Numbers Show

The convergence of these legal actions highlights a critical divergence between Gildan’s reported top-line growth and its underlying operational health. The allegations suggest that revenue recognition was decoupled from actual end-consumer demand, with inventory allegedly languishing on distributor shelves. This dynamic implies that the cash flow generated from these sales may have been delayed or illusory, raising questions about the quality of earnings reported during the period leading up to the HanesBrands acquisition.

Investor Rights and Counsel Selection

Investors who received Gildan securities in connection with the HanesBrands acquisition and suffered losses may have legal rights under federal securities laws. Affected shareholders are encouraged to contact Adam McCall at BFA or Phillip Kim at Rosen Law Firm for more information. All representation is on a contingency fee basis, meaning clients do not pay attorneys’ fees unless there is a recovery.

Gildan Activewear expects to receive $220 million in IEEPA tariff refunds through the U.S. Customs and Border Protection (CBP) refund process in 2026, providing a significant financial boost that will be partially reinvested into strategic growth initiatives. The majority of these refunds are anticipated to be recorded during the third quarter of 2026, offering immediate liquidity and capital allocation flexibility for the apparel manufacturer.

The company has categorized the anticipated refunds into two distinct components: non-recurring benefits and recurring structural benefits. A significant portion of the $220 million represents a one-time gain that Gildan plans to reinvest directly into new incremental strategic growth initiatives for 2026. These investments will target brand building, retail marketing programs, and the acceleration of product innovation and packaging enhancements.

Conversely, a sizeable portion of the refunds reflects a recurring benefit driven by recent changes to U.S. tariff policy. Tariffs have ceased to apply on apparel qualifying as originating under the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR). This regulatory shift represents a structural benefit for the company going forward, improving long-term margin profiles for qualifying products.

Financial Impact and Allocation

The impact of this recurring structural benefit is already reflected in the company’s updated financial guidance, signaling sustained profitability improvements beyond the initial refund receipt. The separation of non-recurring and recurring elements allows investors to distinguish between temporary cash inflows and permanent cost structure improvements.

What the Numbers Show

The bifurcation of the $220 million refund highlights a dual-value creation strategy. While the non-recurring portion provides discretionary capital for aggressive growth levers such as marketing and R&D, the recurring portion validates the efficacy of Gildan’s supply chain positioning under CAFTA-DR. This structural advantage suggests that future earnings power is enhanced independently of the one-time cash injection, as the removal of tariffs on qualifying apparel permanently lowers the cost base for those specific product lines.