The scrutiny centers on Cardinal’s August 11 announcement, which revealed that adjusted EBITDA margins plummeted to 12.4 percent from 18.6 percent a year prior. Management subsequently slashed full-year margin projections to a range of 16 to 18 percent, down from an initial target of over 20 percent. Investors who purchased shares of the NASDAQ-listed company are now being urged to contact Danielle Peyton at Pomerantz LLP to discuss potential claims of securities fraud or breaches of fiduciary duty.

Market reaction to the disclosure was immediate, with shares falling $21.73 to close at $38.27 on the day of the announcement. The investigation will determine if the company’s internal controls and public disclosures were sufficient, particularly in light of the follow-on equity offering conducted just two months earlier.