FTK Shareholder Alert: Investors With Losses May Seek to Lead the Class Action in Flotek Industries Securities Lawsuit - Contact Levi & Korsinsky

Regulatory Focus: The Flotek securities action centers on the Puerto Rico Oversight Board's revocation of contract approval under PROMESA Section 204 and criminal referrals that preceded the collapse of a $400 million backlog.

NEW YORK, Aug. 31, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Flotek Industries, Inc. (NYSE: FTK) that a securities class action was filed on behalf of shareholders who purchased securities between August 3, 2026 and August 17, 2026. Submit your information now. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

FTK shares closed at $25.17 on August 19, 2026, down $1.85 per share, or 6.85%, from the previous day’s close. Just a few days before on August 14, 2026, the stock had closed at $35.83. The lead plaintiff deadline is October 26, 2026.

The Regulatory Chain That Ended the Contract

The agreement announced on August 3, 2026 was subject to review by the Financial Oversight and Management Board for Puerto Rico. On August 13, 2026, Puerto Rico's Public-Private Partnerships Authority and Office of the Energy Czar announced a referral of procurement allegations to the Puerto Rico Department of Justice and federal authorities. On August 14, 2026, the Oversight Board voted to revoke its approval, directed PREPA to terminate the contract, and stated the agreement was no longer in effect under Section 204 of PROMESA. PREPA delivered formal notice of termination effective immediately, citing the consortium's failure to furnish required performance security and the Oversight Board's revocation.

Compliance Gaps Alleged in the Action

• The complaint challenges statements projecting a revenue backlog of approximately $400 million and annual revenue of approximately $40 million from the PREPA project.
• SEC filings stated that power services contracts "are subject to significant risks and uncertainties that could prevent us from realizing expected revenues," language the action contends was generic given specific known conditions.
• Disclosure language indicated roughly 90% of project capacity depended on third parties, without addressing alleged doubts about the consortium's experience, organization, and financial capacity.
• The lawsuit alleges investors were not told of an allegedly unauthorized signature attributed to Enchanted Rock, LLC, whose participation regulators described as expressly relied upon for the project's technical and financial capacity.
• The contract represented approximately 57% of the Company's reported backlog.
  

"Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company's operations," said Joseph E. Levi, Esq. "Here, the complaint alleges that a regulatory revocation under PROMESA erased a backlog investors had been told was worth approximately $400 million."

Find out if you might qualify to recover losses or call (212) 363-7500.

WHY LEVI & KORSINSKY: Over the past 20 years, 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 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 are the defendants named in the FTK lawsuit? A: The complaint names Flotek Industries, Inc. and individual defendants including senior executives who allegedly signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.

Q: What specific misstatements does the FTK lawsuit allege? A: The complaint alleges Flotek Industries, Inc. made materially false or misleading statements regarding the 10-year, $400 million PREPA agreement 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 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 missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it may still be able to participate in any potential settlement or recovery.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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