Gildan Activewear Enters Into Agreement to Settle Proposed Class Action Litigation
August 03 2010 - 8:30AM
Marketwired
Gildan Activewear Inc. (TSX: GIL)(NYSE: GIL) today announced that
it has entered into an agreement to settle all proposed securities
class action proceedings filed in 2008 before the Ontario Superior
Court of Justice, the Quebec Superior Court and the United States
District for the Southern District of New York (the 'Courts'). The
proposed litigation related to, among other things, the Company's
April 29, 2008 announcement revising its fiscal 2008 earnings
guidance.
The settlement will be entirely funded by the Company's
insurance policies and will have no impact on the Company's
earnings or cash flows. The settlement agreement provides for a
total settlement amount of U.S. $22.5 million for distribution to
eligible class members in accordance with a plan of allocation to
be approved by the Courts, net of court approved expenses and
attorneys' fees for class counsel.
The settlement agreement acknowledges that the Company and its
senior officers deny all of the claims and charges of wrongdoing,
liability or violation of laws.
The settlement agreement is conditional upon approval of the
settlement by each of the Courts. Dates have not yet been set for
settlement approval hearings. The settlement agreement is also
subject to the Company's option to terminate the agreement if
opt-outs by shareholders eligible to participate in the settlement
exceed a certain pre-determined threshold.
Profile
Gildan is a vertically-integrated marketer and manufacturer of
quality branded basic apparel. The Company is the leading supplier
of activewear for the screenprint channel in the U.S. and Canada.
It is also a leading supplier to this market in Europe, and is
establishing a growing presence in Mexico and the Asia-Pacific
region. 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. Consumers ultimately purchase the Company's products, with
the Gildan label, in venues such as sports, entertainment and
corporate events, and travel and tourism destinations. The
Company's products are also utilized for work uniforms and other
end-uses to convey individual, group and team identity. The Company
is also a leading supplier of private label and Gildan branded
socks primarily sold to mass-market retailers. In addition, Gildan
has an objective to become a significant supplier of men's and
boys' underwear and undecorated activewear products to mass-market
retailers in North America.
Contacts: Investor Relations Sophie Argiriou Director, Investor
Communications 514-343-8815 sargiriou@gildan.com Media Relations
Genevieve Gosselin Director, Corporate Communications 514-343-8814
ggosselin@gildan.com
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