The lawsuit alleges that Ezell and Clement misled investors by touting a 10-year agreement with PREPA that accounted for approximately 57% of Flotek's total backlog. While the company publicized the deal on August 3, 2026, claiming it would generate $400 million in revenue, the complaint asserts that leadership failed to disclose significant doubts regarding the financial capacity and organization of the consortium partners involved.
Flotek Executives Named in Securities Lawsuit Following Contract Collapse
Flotek Industries faces a securities class action in the Southern District of New York, with CEO Ryan Ezell and CFO Bond Clement named as individual defendants. The litigation centers on the collapse of a $400 million contract that was terminated just 16 days after the company announced its projected revenue impact.
Following the contract's abrupt termination, Flotek shares experienced a sharp decline, falling from $35.83 on August 14 to $25.17 on August 19—a drop of nearly 30% over three trading days. The current action, filed under Sections 10(b) and 20(a) of the Securities Exchange Act, targets the officers' roles as certifying authorities for the company's SEC filings. Investors who purchased stock between August 3 and August 17, 2026, have until October 26, 2026, to apply for lead plaintiff status in the ongoing proceedings.
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