In June 2008, Siskinds LLP filed a proposed class action against Gildan Activewear Inc. (ticker: "GIL") and certain of Gildan's senior officers. The action arises out of certain of Gildan's disclosures regarding its Dominican Republic manufacturing facility and Gildan's earnings' forecast for fiscal 2008. The action asserts common law claims and also seeks leave to pursue claims under Part XXIII.1 of the Ontario Securities Act.
The class action was brought on behalf of all persons who acquired Gildan securities from August 2, 2007 to the close of trading on April 29, 2008 (the "Class Period").
Similar actions were also filed in the Quebec Superior Court, and the United States Federal District Court for the Southern District of New York .
In August 2010, the parties to the Ontario, Québec and U.S. actions entered into an agreement to settle the plaintiffs’ claims in all three actions for US$22.5 million. Eighty-nine percent (89%) of the net settlement fund will be allocated to class members who either: (1) were Canadian residents at the time that they purchased Gildan shares during the Class Period; or (2) purchased Gildan shares over the Toronto Stock Exchange during the Class Period. The balance of the net settlement fund will be allocated to class members who purchased Gildan shares over the New York Stock Exchange during the Class Period, other than Canadian residents. The settlement agreement is made without any admission of liability, wrongdoing or fault by the defendants. You may view a copy of the Settlement Agreement (including the Plan of Allocation) here: [English].
The Ontario, Québec and U.S. courts have approved a notice which provides information on how class members may file a claim, object to the settlement or opt out of the class. You may view a copy of the notice here: [English] [Français].
This settlement has concluded and all claims have been paid.