Browning West Files Lawsuit Against Gildan Activewear By Investing.com

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Los Angeles – Investment partnership Browning West, LP, with approximately 5% stake. Gildan Activewear Inc .’s (NYSE: NYSE:) (TSX: GIL) shares have commenced legal proceedings in the Quebec Superior Court against Gildan and its board of directors.

The lawsuit filed today seeks to ensure that Gildan’s upcoming annual meeting on May 28, 2024 can proceed without delay or interference, as Browning West alleges that its board of directors engaged in conduct that violated shareholder rights.

The investment firm accuses Gildan’s board of engaging in a variety of oppressive tactics, including leaking sensitive information, improperly requesting proxies and engaging in meritless litigation to delay shareholder action. Browning West also claims the board made misleading statements regarding Gildan’s dismissal of founder and appointment of new CEO Vincent Tyra.

Browning West’s principals, Usman S. Nabi and Peter M. Lee, argue that the board’s actions are self-preserving and value-destructive. They asked the Quebec Superior Court to enforce the scheduled date for the annual general meeting and appoint an independent chair to oversee it, ensuring a fair and transparent voting process.

The company also began mailing information circulars to Gildan shareholders, encouraging them to support change at the board level. Browning West’s approach is to communicate directly with shareholders and advocate for necessary changes within the company.

The legal action is part of Browning West’s broader strategy to exercise its rights as a majority shareholder and influence Gildan’s future direction. The company has outlined its intention to make changes to its board of directors and management, but acknowledges that such actions involve risks and uncertainties.

Browning West has retained Olshan Frome Wolosky LLP, Goodmans LLP and IMK as legal advisors, Longacre Square Partners and Pelican PR as advisors, and Carson Proxy for representation services.

The information in this report was prepared based on the press release and reflects only the facts presented in the press release. The outcome of the legal proceedings and their potential impact on Gildan’s governance and future direction are not yet known.

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