Gilimex (GIL) Stock Plunges 6.7% After Losing USD 280M Lawsuit Against Amazon
This Aveluro analysis covers GIL on HOSE in the Personal & Household Goods sector. The classified event type is legal action, with negative sentiment and a deterministic market-impact score of 4.2/10. Aveluro classifies this story as a negative catalyst and risk signal for the affected stock. Source coverage came from Tuổi Trẻ - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Gilimex (GIL), a major garment manufacturer based in Ho Chi Minh City, lost its lawsuit against Amazon in the U.S. District Court for the Southern District of New York. The case was dismissed with prejudice, meaning it cannot be refiled. The stock fell 6.7% on July 10, reflecting the adverse outcome.
Key Facts
- The U.S. District Court for the Southern District of New York dismissed Gilimex’s lawsuit against Amazon with prejudice.
- Gilimex had sought approximately USD 280 million in damages, alleging Amazon breached contracts and unfairly cut orders after the COVID-19 pandemic.
- Amazon accounted for up to 80% of Gilimex’s revenue in 2021, with total orders worth USD 146.6 million that year.
- Gilimex invested heavily to expand capacity, hiring about 7,000 workers and raising annual output to over 1 million storage products to meet Amazon’s demand.
- The company’s revenue fell from VND 3,166 billion in 2022 to VND 936 billion in 2023, a decline of over 70%.
- In 2025, Gilimex reported revenue of VND 713 billion and net profit of only VND 36 billion, down sharply from over VND 300 billion annually in 2020-2021.
- GIL stock closed at VND 10,650 on July 10, down 6.7% with a volume of 935,300 shares.
What Happened
On July 10, Gilimex (GIL) shares fell by the daily limit of 6.7% after news emerged that the company had lost its lawsuit against Amazon in a New York court. The U.S. District Court for the Southern District of New York dismissed the case with prejudice, permanently barring Gilimex from refiling. The company had sued Amazon in late 2022, seeking approximately USD 280 million in damages for alleged breach of contract, unfair trade practices, and unilateral order cuts after the pandemic.
Gilimex has not yet issued an official statement, but under Vietnamese regulations, listed companies must disclose material events within 24 hours. The ruling effectively ends a legal battle that began after Amazon sharply reduced orders, leaving Gilimex with excess capacity and large inventories.
Market Context
GIL, listed on HOSE, has been under severe pressure since the dispute with Amazon began. The stock has fallen from highs above VND 40,000 in 2021 to current levels around VND 10,650. The company’s financial performance deteriorated sharply after losing its largest customer. The July 10 decline of 6.7% reflects the market’s negative reaction to the final legal defeat, which removes any hope of compensation from the lawsuit.
Strategic Significance
The dismissal of the lawsuit closes a chapter for Gilimex but leaves the company without a major revenue driver. The loss of Amazon as a primary customer forced Gilimex to downsize and seek new clients, but revenue has not recovered. The company has diversified into industrial real estate, but this segment is still nascent. The legal outcome removes a potential cash inflow from damages, meaning Gilimex must rely on its own operational turnaround to restore profitability.
What to Watch
- Gilimex’s official disclosure on the lawsuit outcome and any plans for appeal or settlement.
- Q2 2026 earnings report to assess revenue trends and margin recovery.
- Progress in new customer acquisition and order book visibility.
- Updates on the industrial real estate segment and its contribution to revenue.
- Any changes in foreign ownership limits or major shareholder moves.