What Happened?

On August 17, 2026, at approximately 1:20 pm EST, Wolfpack Research published a report alleging Flotek Industry Inc.’s “$400 million contract with the Puerto Rico Electric Power Authority (PREPA), accounting for ~57% of FTK’s backlog, has been canceled.” According to the report, Flotek had stepped into the $6 billion PREPA deal two days after the deal was signed, and was swapped in place of another contractor, Enchanted Rock, LLC (“Enchanted Rock”).  The report further claimed that Enchanted Rock’s “name and signature were used without authorization,” so a “federally appointed financial regulator revoked its authorization over the deal due to [the] apparent unauthorized signature and referred the matter for criminal prosecution.”

On this news, Flotek’s stock price fell $7.17, or 20.01%, to close at $28.66 per share on August 17, 2026, thereby injuring investors.

Then, on August 18, 2026, before the market opened, the Company announced the Financial Oversight and Management Board for Puerto Rico voted to direct the PREPA to terminate a 10-year power generation contract in which Flotek holds project responsibilities. PREPA issued a directive to all consortium parties to immediately hold work on the proposed 400 MW Aguirre Power Plant project pending its evaluation of recent developments, although Flotek said it has not received a formal termination notice and its participation in the project remains subject to resolution of the PREPA contract matter.

On this news, Flotek’s stock price fell $1.64, or 5.72%, to close at $27.02 on August 18, 2026, thereby further injuring investors.

Then, on August 19, 2026, before the market opened, Flotek confirmed the termination of the Puerto Rico power contract. The Company disclosed that PREPA delivered formal notice terminating the power purchase and operating agreement with the company, effective immediately.

On this news, Flotek’s stock price fell $1.85, or 6.85%, to close at $25.17 per share on August 19, 2026, thereby further injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that between August 3, 2026 and August 17, 2026, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that there were credible reasons to doubt the experience, organization, and financial capacity of the consortium parties for PREPA’s power generation project; (2) that, as a result, there was a risk that revenue from the PREPA contract would not be realized; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.