Federal Court Dismiss Lawsuit Against Flotek
U.S. District Judge Alfred H. Bennett rules Flotek did not intentionally mislead investors
HOUSTON – April 4, 2017 — Flotek Industries Inc. (NYSE: FTK) announced today that the U.S. District Court for the Southern District of Texas has granted Flotek’s motion to dismiss the securities class action that had been filed against the company in the U.S. District Court for the Southern District of Texas.
Plaintiffs alleged that Flotek and its managers intentionally manipulated third-party data to overstate the efficacy of their patented Complex nano-Fluid® chemistry products on well performance in an interactive computer model developed for clients as a value validation tool.
But U.S. District Judge Alfred H. Bennett concluded that the plaintiffs failed to show any deliberate or fraudulent intent by Flotek to manipulate the data. “Having considered the arguments and the applicable law, the Court grants Defendant’s Motion to Dismiss,” Judge Bennett wrote in his March 30 ruling.
John W. Chisholm, Chairman and CEO of Flotek, said he had been confident of the strength of the company’s case.
“This is a resounding victory for Flotek as we continue to partner with our clients to enhance ultimate recoveries through our prescriptive chemistry technology and position ourselves for growth in the rebounding U.S. oil and gas industry,” he said.
The case is 4:15-cv-03327 in United States District Court Southern District of Texas Houston Division.
About Flotek Industries, Inc.
Flotek is a developer and distributor of prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. Flotek’s inspired chemists draw from the power of solvents and oils of oranges to deliver solutions that enhance energy production, cleaning products, foods & beverages and fragrances. In the oil and gas sector, Flotek serves large and independent energy producers and oilfield service companies, both domestic and international. Flotek Industries, Inc. is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK." For additional information, please visit Flotek's web site at www.flotekind.com.
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