#United States #New York #Flotek Industries #Ryan Ezell #Bond Clement

Important Deadline for Flotek Industries Investors

Levi & Korsinsky, LLP is reaching out to the investors of Flotek Industries, Inc. (NYSE: FTK) regarding a significant class action lawsuit currently in motion. The lawsuit involves notable figures in the company, including Chief Executive Officer Ryan Ezell and Chief Financial Officer Bond Clement, who have been named as individual defendants. The lawsuit revolves around sales representations made in August 2026, specifically about a $400 million boilerplate contract that faced termination shortly after it was publicized.

Overview of the Case

The ongoing securities class action targets purchases made between August 3, 2026, and August 17, 2026. During this time frame, FTK shares saw a drastic price drop. On August 14, the shares closed at $35.83, only to fall to $25.17 just days later on August 19. This sudden decline of $10.66 per share, translating to about 29.75%, has raised eyebrows among investors and stakeholders.

The heart of the lawsuit claims that the executives did not adequately inform investors about potential concerns regarding the capabilities and financial stability of the consortium behind the reported contract. Notably, the PREPA contract, which constituted a substantial 57% of Flotek’s backlog, was terminated soon after it was revealed to the public. This led to considerable losses for those who invested during the stated period.

Legal Framework and Allegations

The lawsuit is currently being processed in the United States District Court for the Southern District of New York. It cites violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Rule 10b-5. It argues that both Ezell and Clement had the authority to control the content disseminated in the company's SEC filings and public disclosures.

Specifically, claims have emerged alleging that both figures were crucial to controlling various disclosures, including:

• - The August 3, 2026 announcement concerning the 10-year contract projecting approximately $400 million in revenue.
• - The Form 10-Q from Q2 2026 filed on August 4 which reiterated the forecast associated with the PREPA backlog.
• - Certification of the accuracy of financial disclosures as per the Sarbanes-Oxley Act.

Joseph E. Levi, an attorney with the firm, remarked, "Officers who certify a company's filings take on personal responsibility for their accuracy, and the complaint here alleges that a projection representing roughly 57% of backlog was presented without disclosure of known doubts."

Next Steps for Investors

The deadline for possibly becoming a lead plaintiff in this class action is set for October 26, 2026. Investors wishing to participate are encouraged to gather relevant brokerage records concerning their purchases, including dates and quantities of shares acquired. It’s essential for affected investors to submit their information promptly to determine their eligibility for potential recovery of losses.

Interestingly, even investors who have sold their FTK shares can still recover losses, as eligibility is based on purchase periods rather than current shareholding status.

Frequently Asked Questions

Q: What misstatements does the lawsuit allege?
A: Flotek allegedly made misleading statements about the experience and financial stability of the consortium behind the $400 million contract, which significantly impacted stock value upon the contract's termination.

Q: What does a lead plaintiff do?
A: A lead plaintiff represents the interests of the entire class in litigation, providing oversight and influencing proceedings.

Q: What costs do investors face?
A: Participation generally entails no upfront costs as such cases operate on a contingency basis.

For additional information regarding eligibility and potential actions, investors can reach out to Levi & Korsinsky LLP at (212) 363-7500 or submit their inquiries through email. The law firm, renowned for championing shareholder rights, is offering no-cost evaluations for individuals impacted by this recent development.

Stay informed and take action to secure your interests as the legal landscape continues to evolve.