Flotek Industries Faces Class Action Over Alleged PREPA Contract Failure

The complaint centers on a 10-year agreement Flotek announced in early August to support a 400-megawatt natural gas-fired project for the Puerto Rico Electric Power Authority. While the company touted the deal as a major business milestone, the lawsuit alleges management failed to disclose critical weaknesses regarding the financial capacity and experience of the consortium partners involved. These omissions left investors in the dark about the significant risk that the contract revenue would never materialize.

The situation shifted abruptly on August 17 when Wolfpack Research published a report claiming the PREPA contract—which accounted for roughly 57% of Flotek's total backlog—had been canceled. The market response was immediate and sharp. Flotek shares plummeted 20%, shedding $7.17 to close at $28.66. Wolf Haldenstein Adler Freeman & Herz LLP is now spearheading the legal effort to recover losses for those affected, urging shareholders to come forward before the lead-plaintiff cutoff.