NEW YORK, Sept. 01, 2026 (GLOBE NEWSWIRE) -- SueWallSt notifies investors in Flotek Industries, Inc. (NYSE: FTK) that a securities class action has been filed on behalf of shareholders who purchased securities between August 3, 2026 and August 17, 2026. Check if you might be eligible to recover your investment losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.
FTK shares fell $10.66 per share, a 29.75% decline, over a three-day decline, closing at $25.17 on August 19, 2026 after the $400 million PREPA contract was terminated. The lead plaintiff deadline is October 26, 2026.
What the Company Disclosed
Flotek's Form 10-Q for the quarter ended June 30, 2026 stated that "[o]ur power services contracts are subject to significant risks and uncertainties that could prevent us from realizing expected revenues," and that the Company's ability to earn revenue depended on "third-party participants over whom we have limited or no control." The filing added that these factors "could result in significant delays, increased costs, contract termination, or failure to complete a project." The same filing reaffirmed a potential 10-year revenue backlog of approximately $400 million and annual revenue of approximately $40 million.
What Plaintiffs Allege Was Missing
The complaint challenges these disclosures as conditional warnings about hypothetical risks rather than disclosure of conditions that allegedly already existed. Disclosure language indicated general third-party execution risk while, as alleged, credible reasons already existed to doubt the experience, organization, and financial capacity of the consortium behind the 400 MW Aguirre project.
Disclosure Gaps Alleged
- Alleged doubts about the consortium's organizational and financial capacity to sustain a 10-year contract term
- Alleged use of a third party's name and signature without authorization in the underlying agreement
- Alleged involvement of an individual with a prior felony conviction connected to a project partner
- Alleged absence of adequate due diligence into Power Expectations LLC before the August 3, 2026 announcement
- No disclosure of publicly reported regulatory concerns preceding the Class Period
Regulatory Reality
On August 14, 2026, the Financial Oversight and Management Board for Puerto Rico voted to revoke approval of the power generation contract and directed PREPA to terminate it under Section 204 of PROMESA. PREPA delivered formal notice of termination effective immediately.
"Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company's operations. The complaint alleges that Flotek's filings described contract termination as a possibility while conditions undermining this particular contract were already present." -- Joseph E. Levi, Esq.
LEAD PLAINTIFF DEADLINE: October 26, 2026
Learn more about the case or call (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the FTK Lawsuit
Q: What specific misstatements does the FTK lawsuit allege? A: The complaint alleges Flotek Industries, Inc. made materially false or misleading statements regarding a 10-year, $400 million agreement with the Puerto Rico Electric Power Authority and the capacity of its consortium partners during the Class Period. When the contract's cancellation and termination were disclosed, the stock price declined sharply.
Q: What court was the FTK class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.
Q: Who is eligible to join the FTK investor lawsuit? A: Investors who purchased FTK stock or securities between August 3, 2026 and August 17, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: What do FTK investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What if I already sold my FTK shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
Tel: (888) SueWallSt\
Fax: (212) 363-7171
Attorney Advertising. Prior results do not guarantee similar outcomes.
