# Scott+Scott Opens Investigation Into Cardinal Infrastructure Group After 36% Stock Drop > Scott+Scott is investigating Cardinal Infrastructure Group over potential federal securities law violations after a 36% stock drop on a 10.8% gross margin. - Published: 2026-10-14T22:51:42+00:00 - Section: Legal & Disputes - Author: News Desk - URL: https://newsforagent.com/news/2026-10-14/scott-scott-cardinal-infrastructure-investigation - Source: [Business Wire](https://www.businesswire.com/news/home/20261014182391/en/) ## Key takeaways - Scott+Scott Attorneys at Law LLP is investigating potential federal securities law violations involving Cardinal Infrastructure Group Inc. (NASDAQ: CDNL). - Cardinal Infrastructure reported a second quarter 2026 gross profit margin of 10.8%, down from 13.9% in the second quarter of 2025. - The price of Cardinal Infrastructure stock fell more than 36% after the August 11, 2026 results. [Scott+Scott](https://akta.pro/company-profiles/0005q1x/scott-scott) Attorneys at Law LLP is investigating potential violations of U.S. federal securities laws involving [Cardinal Infrastructure Group](https://akta.pro/company-profiles/00kd9il/cardinal-infrastructure-group) Inc. (NASDAQ: CDNL), the firm said on October 14, 2026. The [Business Wire](https://www.businesswire.com/news/home/20261014182391/en/) announcement followed a stock drop of more than 36% after the company reported a second quarter 2026 gross profit margin of 10.8%. ## Scott+Scott's Investigation And Cardinal's Margin Drop Cardinal Infrastructure is a North Carolina-based infrastructure construction company specializing in underground utility installation, site preparation, grading, and road construction for residential, commercial, industrial, and municipal projects. On August 11, 2026, the company reported second quarter 2026 financial results showing a gross profit margin of 10.8%, down from 13.9% in the second quarter of 2025. Cardinal Infrastructure said its adjusted gross profit margin "was impacted by increased subcontracted labor and equipment rental costs in certain developing markets, reflecting both customer demand and an intentional shift toward a more diversified, less residential-weighted project mix." The price of Cardinal Infrastructure stock fell more than 36% on the news. Scott+Scott is a shareholder and consumer rights litigation firm. Mandeep S. Minhas, an attorney at the firm, is handling inquiries from investors who purchased Cardinal Infrastructure common stock and suffered a loss, realized or unrealized. [The future of trading](https://capital.com/en-int/news/cdnl-investors-a-securities-fraud-investigation-is-pending-on-behalf) reported that Bleichmar Fonti & Auld LLP announced its own investigation into Cardinal Infrastructure Group for potential securities fraud over its A.L. Grading Contractors acquisition, and that the stock fell 36% on August 11, 2026, after second quarter results showed an adjusted EBITDA margin of 12.4% versus the expected 20% or more. ## Scott+Scott's Litigation Track Record Scott+Scott was founded in 1975 and is headquartered in Colchester, United Kingdom, with an estimated 101 to 250 employees, according to akta.pro [company records](https://akta.pro/company-data). The same records list David R. Scott as managing partner, alongside partners Sylvia M. Sokol, Patrick McGahan and Karin Garvey. The firm's scale indicators include more than $2.3 billion in recoveries in Foreign Exchange Benchmark Rates Antitrust Litigation, described as the largest antitrust recovery with $2.3 billion returned to investors in the FX case, and a $68 million class action settlement with Google LLC and Alphabet Inc. over Google Assistant's recording of user communications, co-announced with Lowey Dannenberg, P.C. ## Earlier Scott+Scott Investigations Scott+Scott has opened a series of investor investigations in 2026. In July 2026, the firm launched an investigation into Micron Technology, Inc. regarding a consumer class action complaint filed on June 25, 2026, alleging anticompetitive behavior around computer memory supply and prices, according to Gurufocus. Also in July 2026, Scott+Scott announced an investigation into whether directors and officers of First BanCorp. (NYSE: FBP) breached their fiduciary duties to the company and its shareholders, according to FinancialContent Business Page. In June 2026, the firm announced an investigation into Celsius Holdings, Inc. regarding whether certain officers and directors breached their fiduciary duties by allegedly deceptively marketing energy drinks to children, according to Gurufocus. ## Cardinal's Hughes Brothers Acquisition Cardinal Infrastructure Group agreed to acquire Hughes Brothers Construction for $357.5 million, a deal expected to close in the fourth quarter of 2026, according to PR Newswire. The transaction adds a Central Florida contractor with over $220 million in revenue and a $350 million backlog. ## Companies in this story - [Scott+Scott company profile](https://akta.pro/company-profiles/0005q1x/scott-scott) · website: https://scott-scott.com - [Cardinal Infrastructure Group company profile](https://akta.pro/company-profiles/00kd9il/cardinal-infrastructure-group) · website: https://cardinalinfrastructuregroup.com --- News for Agent · https://newsforagent.com/llms.txt