Gildan Activewear Inc (NYSE: GIL) Investor Securities Class Action Lawsuit 06/02/2008

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Company Name(s): 
Gildan Activewear
Case Name: 
Gildan Activewear Shareholder Class Action Lawsuit 06/02/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: GIL
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
06/02/2008
Class Period Begin: 
08/02/2007
Class Period End: 
04/29/2008
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
08/01/2008
Date Settled: 
03/02/2011
Settlement Amount: 
$22,500,000
Deadline to Participate in Settlement: 
03/10/2011
Summary: 

December 12, 2012 - The court ordered the authorization of the distribution of the net settlement fund.

March 2, 2011 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

October 14, 2010 - The court preliminarily approved the settlement.

August 10, 2010 - Parties filed a stipulation of settlement.

June 9, 2010 - The U.S. Court of Appeals for the Second Circuit granted the motion to remand the case to the district court.

December 30, 2009 - The lead plaintiffs filed a notice of appeal.

December 4, 2009 - The court denied the lead plaintiffs' motion for reconsideration.

July 17, 2009 - The lead plaintiffs filed a motion for reconsideration.

July 2, 2009 - The court dismissed the case with prejudice.

July 1, 2009 - The court granted the defendants' motion to dismiss.

December 19, 2008 - The defendants filed a motion to dismiss.

November 17, 2008 - The lead plaintiffs filed an amended consolidated complaint.

September 16, 2008 - The lead plaintiffs and lead counsel were appointed and all cases were consolidated.

August 1, 2008 - A lead plaintiff motion was filed.

July 3, 2008 - An additional investor filed a complaint.

June 25, 2008 - Another investor filed a complaint.

June 2, 2008 - An investor in shares of Gildan Activewear Inc (NYSE: GIL) filed a lawsuit in the U.S. District Court for the Southern District of New York against Gildan Activewear Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between August 2, 2007 through April 29, 2008.

The plaintiff charges Gildan Activewear Inc and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that, between August 2, 2007 through April 29, 2008, defendants issued a series of materially false and misleading statements concerning Gildan Activewear Inc'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 Activewear Inc's activewear were performing below internal expectations as a result of a shortfall in production from its Dominican Republic textile facility; (ii) that Gildan Activewear Inc 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 Gildan Activewear Inc and its business. Then, on April 29, 2008, Gildan Activewear Inc 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 Gildan Activewear Inc's stock (NYSE: GIL) fell $10.99 per share, or 30%, to close at $24.93 per share, on heavy trading volume.

Gildan Activewear Inc supplies activewear for the wholesale imprinted sportswear market in the United States and Canada, as well as in Europe. The Company sells T-shirts, sport shirts, and fleece in large quantities to wholesale distributors as undecorated blanks, which are subsequently decorated by screenprinters with designs and logos.