On March 7, 2025, 10 former directors at Gildan Activewear filed a lawsuit against the company for $25.6 million. According to multiple news reports, they claim the T-shirt manufacturer failed to pay them deferred compensation following their resignation in the face of an activist shareholder campaign to reinstate founder Glenn Chamandy to CEO.

The Globe and Mail reports that former Gildan chair Donald Berg and nine other former directors filed the lawsuit in the Quebec Superior Court alleging the Montreal-based apparel company withheld payouts on deferred share units they received while serving on the board. The 10 directors say the company has refused to cash out their deferred compensation because of “the investigation of certain questions surrounding the board of directors and the decisions it made during the course of the CEO succession.”

The saga originates back to 2023 and the sudden dismissal of Chamandy, which ignited an approximately six-month-long battle led by shareholders, including Browning West, to reinstate him. After several back-and-forth disputes and lawsuits, Chamandy was ultimately restored as CEO and the entire 12-member board resigned.

As per the lawsuit, the claims range from a $5.7-million payment for Berg, to a $221,461 claim for Sharon Driscoll. Berg reportedly served on the board for nine years, and Driscoll for six months.

At the time of writing, Gildan has declined to comment on the lawsuit.