Cardinal Financial Corp. in Tysons Corner, Va., restated its third-quarter 2004 and 2005 and full-year 2004 results to correct mistakes in how it classified some loans and payments connected with its July 2004 acquisition of George Mason Mortgage Corp.
The $1.5 billion-asset Cardinal made the corrections in the 10-K report it filed Monday with the Securities and Exchange Commission. The accounting changes did not affect Cardinal's bottom line for the three reporting periods.
The company also reported in its 10-K that one of its banking clients, Green Village Concrete Inc., had filed a lawsuit against it on Feb. 1. Green Village claims that Cardinal was negligent in cashing forged and unsigned checks drawn on its account, and that Cardinal processed unauthorized automated clearing-house transactions associated with the account.
Cardinal said that the suit is still in the pre-trial discovery phase, and that the company plans a vigorous defense.
Both bits of news seemed to spook investors. In heavy trading Cardinal's shares were down 2.7% late Monday, at $11.87.
