A securities law firm has announced an investigation into Cardinal Infrastructure Group Inc. over potential securities fraud. The investigation concerns statements the company made about the performance of its acquisition of A.L. Grading Contractors.
Cardinal announced its second-quarter 2026 results on August 11, 2026. Its adjusted EBITDA margin was significantly below expectations. The stock price fell by more than 36% after the results were announced.
The investigation follows Cardinal’s recent closing of another acquisition, Allied Paving Contractors, which was intended to expand the company’s capabilities in the Atlanta market. Cardinal has been growing through acquisitions, and the investigation raises questions about the performance and integration of acquired businesses.