The scrutiny follows Cardinal’s August 11 financial report, which revealed a sharp disconnect between the company’s record revenue and its bottom line. Despite raising over $318 million in a June offering of 4.6 million shares at $73.00 each, the firm reported that adjusted earnings per share plummeted 51% year-over-year. Management cited labor shortages and high subcontractor costs as the primary drivers behind the margin compression, forcing a downward revision of their full-year profitability guidance.

Reed Kathrein, the partner leading the firm's investigation, intends to determine if Cardinal failed to disclose these specific cost pressures while simultaneously touting an $866 million project backlog to investors. The firm is now calling on those who suffered significant losses following the August disclosure to come forward. Beyond investor claims, the probe is also soliciting potential whistleblowers who may possess non-public information regarding the company's internal practices during the period surrounding the stock offering.