CASES
Gildan Activewear Inc.
Class Period: Aug 2, 2007 to Apr 29, 2008
Lead Plaintiff Deadline: Aug 1, 2008 + Deadline passed
Summary of Case:
Scott + Scott has filed a securities class action against Gildan Activewear Inc. (NYSE: GIL) ("Gildan" or the "Company") on behalf of all securities purchasers from August 2, 2007 through April 29, 2008 (Class Period) in the United States District Court for the Southern District of New York.
The complaint alleges that during the Class Period, Gildan issued a series of materially false and misleading statements concerning the Company's financial performance and prospects. Specifically, the complaint alleges that these statements were materially false and misleading because defendants failed to disclose and/or misrepresented: (i) that sales of Gildan's activewear were performing below internal expectations as a result of a shortfall in production from its Dominican Republic textile facility; (ii) that Gildan was failing to timely write down an impairment in the value of its inventories, thereby materially overstating its financial results; and (iii) as a result of the foregoing, defendants had no reasonable basis for their earnings guidance for fiscal 2008 and other positive statements about the Company and its business. Then, on April 29, 2008, Gildan issued a press release announcing that it was reducing its earnings per share guidance for the second quarter and full year of fiscal 2008. Upon this news, shares of the Company's stock fell $10.99 per share, or 30%, to close at $24.93 per share, on heavy trading volume.
The deadline to file for Lead Plaintiff is August 1, 2008.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.