Flotek Investors Can Seek Lead Role in Puerto Rico Power Contract Suit

Flotek Industries, Inc. (NYSE: FTK) investors may seek lead-plaintiff status in a proposed securities case over a Puerto Rico power project after its termination put expected contract revenue at risk.

Kaplan Fox issued an Oct. 15 notice urging investors in the proposed class to seek appointment. The class covers people who acquired Flotek securities from Aug. 3 through Aug. 17, 2026. Saad Bashir filed the complaint in New York federal court on Aug. 26, naming Flotek, Chief Executive Officer Ryan Ezell and Chief Financial Officer Bond Clement as defendants.

The complaint alleges that Flotek and its executives failed to disclose reasons to question the experience, organization and financial capacity of the consortium involved in the Puerto Rico project. It says the alleged omissions put expected contract revenue at risk and made statements about Flotek’s business and prospects misleading. The allegations have not been adjudicated.

Flotek expected the 10-year agreement, tied to a 400-megawatt natural-gas project, to generate about $40 million in annual revenue at full deployment. Its planned contribution included up to 40 megawatts of generation capacity. Flotek projected a potential 10-year revenue backlog of $400 million.

The Puerto Rico Electric Power Authority (PREPA) delivered a termination notice on Aug. 18, effective immediately. The stated grounds included the consortium’s failure to provide required performance security and the Financial Oversight and Management Board for Puerto Rico’s revocation of approval and direction to terminate. At that time, Flotek had received no payments, recorded no revenue and had not begun deploying equipment under the agreement.

The Oversight Board described the broader temporary-power contract as a $5.9 billion, 10-year agreement. That amount covers the wider project; Flotek’s potential $400 million backlog was tied to its own agreement.

Felicia Marti filed a separate securities complaint on Sept. 23 and asked the court to treat it as related to Bashir’s case. That request sought related-case treatment, a procedural step distinct from consolidation.

A lead plaintiff represents investors in a proposed class and is selected by the court. Investors may seek appointment to that role, but do not need to do so to participate in any potential recovery.