Robbins Arroyo LLP: Flotek Industries, Inc. (FTK) Misled Shareholders According to a Recently Filed Class Action
November 16 2015 - 2:37PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed in the U.S. District Court for the
Southern District of Texas. The complaint alleges that officers and
directors of Flotek Industries, Inc. (NYSE: FTK) violated the
Securities Exchange Act of 1934 between October 23, 2014 and
November 9, 2015, by making materially false and misleading
statements about Flotek's business prospects. Flotek develops and
supplies oilfield products, services, and equipment to the oil,
gas, and mining industries in the United States and
internationally. Flotek designed FracMax, a patent-pending mobile
application that presents analytical data for hydraulically
fractured wells across the United States.
View this information on the law firm's Shareholder Rights
Blog:www.robbinsarroyo.com/shareholders-rights-blog/flotek-industries-inc
Flotek Accused of Issuing Misleading Information About
FracMax
According to the complaint, during 2014 and 2015, Flotek filed
several Form 10-Qs and a Form 10-K with the U.S. Securities and
Exchange Commission ("SEC") attesting to the efficacy of FracMax.
The company touted FracMax in multiple filings, stating, "The
Company plans to continue to expand the capabilities and use of its
patent pending FracMax software which will continue to enhance the
Company's sales and marketing efforts by validating the production
and economic benefits of the company's core Complex nano-Fluid
chemistries." On September 11, 2015, the company gave an investor
presentation, which included production data of four proximate
wells in Texas from the FracMax database that purportedly came
directly from the Texas Railroad Commission.
However, on November 9, 2015, Australian analyst firm Bronte
Capital published a report on Flotek asserting that the production
data of the wells in the investor presentation did not match the
data in the Texas Railroad Commission, and that a version of
FracMax in the Apple iTunes store did not work. Then, on November
10, 2015, the company issued a press release acknowledging the data
and process errors in the FracMax database and the understatement
of production data in its investor presentation. On this news,
Flotek stock fell $5.56 per share, or over 38%, to close at $9.04
per share on November 10, 2015.
Flotek Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at 800-350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20151116006424/en/
Robbins Arroyo LLPDarnell R. Donahue619-525-3990 or Toll-Free
800-350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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