Flotek Industries (FTK) PREPA Contract Concealment Case

Attorneys review the case details to decide whether to proceed with a class action.

S.D. New York

Court

1:26-cv-07285

Case number

08/03/2026

Class period Start

08/17/2026

Class period End

10/26/2026

Lead Plaintiff motion deadline

$FTK investors filed a claim against Flotek Industries for touting a $400 million Puerto Rico power contract while concealing serious, known doubts about the experience and financial capacity of its consortium partners, and an unauthorized-signature scandal that ultimately sank the deal.
Flotek's stock fell 20% in a single day after a short-seller report revealed the company's flagship PREPA contract.
$FTK investors can join this case to be notified about potential recovery.
Case Details:

Flotek Industries is an energy technology and services company. On August 3, 2026, Flotek announced a 10-year agreement to support a 400 MW natural gas-fired power generation project for the Puerto Rico Electric Power Authority (PREPA), touting an expected $400 million revenue backlog from the deal. 

Flotek had been swapped into the project just two days after the underlying contract was signed, replacing a company called Enchanted Rock, LLC, whose technical, operational, and financial capacity had reportedly been relied upon by regulators in approving the project.

What Flotek did not disclose is that there were credible, pre-existing reasons to doubt the project's viability: a February 2026 letter from Puerto Rico's financial oversight regulator had already questioned the lead consortium partner's experience, organization, and financial capacity to execute a ten-year, roughly $1.2 billion contract given its reported $17 million in annual revenue, and a competing bidder had filed suit alleging the award process was improperly conducted in favor of an inexperienced company. 

On August 17, 2026, short-seller Wolfpack Research published a report alleging that Enchanted Rock's name and signature had been used without authorization to secure the deal, that a federal regulator had revoked its authorization over the contract and referred the matter for criminal prosecution, and that the CEO of Flotek's local partner had a history tied to an alleged $770 million fraud scheme. Flotek's stock fell $7.17, or 20.01%, to close at $28.66 on the news. 

The following day, Flotek confirmed that Puerto Rico's oversight board had voted to revoke approval of the contract and direct its termination, sending shares down a further 5.72%. 

On August 19, 2026, Flotek confirmed PREPA had formally terminated the agreement effective immediately, and shares fell an additional 6.85% to close at $25.17, down from a Class Period high of $38.82.

Based on these events, $FTK investors filed a claim against Flotek, alleging the company:
Failed to disclose credible, pre-existing reasons to doubt the experience, organization, and financial capacity of its consortium partners on the PREPA project
Concealed that there was a material risk the expected $400 million in PREPA revenue would not be realized
Made positive statements about the contract and the Company's business prospects that were materially misleading and lacked a reasonable basis
Investors argue Flotek misled the market about the reliability of its flagship Puerto Rico contract, causing losses when the short-seller report and subsequent contract termination revealed the true, previously concealed state of the deal.

Case Type

US Securities Class Action

Case Status

Attorney Investigation

Alleged Offence

Misleading Statements,

Failure to Disclose,

Price manipulation

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

08/17/2026

Filing date

08/26/2026

Lead Plaintiff Deadline

10/26/2026