NEW YORK, Aug. 27, 2026 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, is investigating Cardinal Infrastructure Group, Inc. (NASDAQ: CDNL) (“Cardinal” or the “Company”) for potential violations of the federal securities laws.
Cardinal completed its initial public offering in December 2025 and, on June 24, 2026, completed a secondary offering of approximately 4.6 million shares at $73.00 per share, raising more than $318 million. In connection with the offering, Cardinal touted its acquisition of A.L. Grading Contractors and expressed confidence in the Company's ability to maintain adjusted EBITDA margins exceeding 20%.
On August 11, 2026, Cardinal reported second quarter 2026 financial results that fell well short of those expectations. Adjusted earnings per share fell 51% year-over-year to $0.26, missing consensus estimates of $0.47. Gross margin declined to 15.9%, from 21.3% in the prior-year period, and adjusted EBITDA margin fell to 12.4%, from 18.6% a year earlier — results the Company attributed in part to increased costs, labor shortages, equipment dependency, and scalability issues at its recently acquired A.L. Grading Contractors business. Cardinal also cut its full-year 2026 adjusted EBITDA margin guidance to a range of 16% to 18%, down from its prior guidance of more than 20%. The investigation concerns whether Cardinal and its officers and/or directors failed to disclose these cost pressures and operational risks at the time of the June 2026 secondary offering, and whether the Company had a reasonable basis for its margin guidance.
Following this news, the price of Cardinal stock fell $21.73 per share, or approximately 36%, from a close of $60.00 per share on August 10, 2026 to close at $38.27 per share on August 11, 2026, causing losses to shareholders.
“Our investigation concerns whether the company and its executives provided investors with accurate and complete information about the company,” said attorney Andrea Farah, Lowey Dannenberg, P.C. partner and head of the firm's securities practice.
If you suffered a loss in Cardinal securities, and wish to participate, or learn more about your eligibility, contact our attorneys Andrea Farah (afarah@lowey.com) at (914) 733-7256 or Vincent R. Cappucci Jr. (vcappucci@lowey.com) at (914) 733-7278.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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SOURCE: Lowey Dannenberg
