Purchasers of Gildan Activewear stock have filed a class action lawsuit in New York and are seeking damages against the company.

The company, which produces T-Shirts for the US and Canadian markets, could face a class action case in the United States District Court for the Southern District of New York, brought by Coughlin Stoia representing a group of purchasers of Gildan common stock between 2 August 2007 and 29 April 2008.

A Coughlin Stoia statement said that the complaint accuses Gildan and certain of its officers and directors with alleged violations of the Securities Exchange Act of 1934.

The complaint alleges that defendants issued "a series of materially false and misleading statements concerning the company's financial performance and prospects" during the class period.

According to the statement, this was before Gildan announced it was reducing its earnings per share guidance for the second quarter and full year of fiscal 2008 in April, sending shares down or 30% to close at $24.93 per share on heavy trading volume.

Gildan has made no official reaction to the filing and the allegations have not yet been heard in court.