Cardinal Financial Corp., Board of Directors Hit with Securities Suit

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A proposed class action filed on behalf of Cardinal Financial Corporation’s stockholders claims the company and its board of directors violated federal securities laws by issuing “materially incomplete and misleading disclosures” to the U.S. Securities and Exchange Commission. Filed in Virginia, the 16-page complaint alleges the financial services holding company’s process of merging with another financial outfit harmed stockholders because the defendants, in SEC filings, failed to include critical information, including potential conflicts of interests concerning a financial advisor. Absent this and other key disclosures, the lawsuit argues, shareholders would not be afforded the opportunity to make an informed vote in favor or against the transaction.