Flotek Industries Faces Class Action After $400 Million Contract Collapse

The legal action centers on a $400 million contract with the Puerto Rico Electric Power Authority (PREPA), which Flotek initially touted as a cornerstone of its revenue backlog. On August 3, 2026, the company announced the 10-year agreement, claiming it would generate roughly $40 million in annual revenue. However, the narrative shifted abruptly on August 17 when Wolfpack Research reported that the contract had already been canceled. The report further alleged unauthorized signatures and a criminal referral involving a financial regulator, triggering a 20% single-day stock decline.

Flotek confirmed the termination in subsequent days, acknowledging that the Oversight Board had directed PREPA to scrap the deal. By the time the dust settled on August 19, shares had slid from a class-period high of $38.82 to $25.17. Plaintiffs now argue that Flotek omitted critical information regarding the financial capacity and organizational stability of its consortium partners, effectively inflating the stock price by presenting a $400 million backlog that was already in jeopardy. Investors seeking to serve as lead plaintiff in the case have until October 26, 2026, to file with the court.