NEW YORK, Nov. 23, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that class action lawsuits have been filed in the United States District Court for the Southern District of Texas on behalf of purchasers of Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE:FTK) securities from October 23, 2014 through November 9, 2015, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Flotek investors under the federal securities laws.
If you purchased Flotek securities during the Class Period, you may, no later than January 11, 2016, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you want more information about the Flotek Securities Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com.
The complaint alleges that throughout the Class Period, Defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) Flotek Industries proprietary software application FracMax had data and process errors; (2) the reported production data from FracMax for three of the wells in the Company’s New York City Investor Presentation on September 11, 2015 were inaccurate; (3) an application from the Company claiming to be FracMax available in the Apple iTunes Store does not work; and (4) as a result of the foregoing, the Company’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On November 9, 2015, Australian analyst firm Bronte Capital published a report on Flotek asserting, among other things, that: (1) the production data of Targac 1H, Gillespie 1H and Berger Unit 1H set forth in the September 11th Presentation did not match the data in Texas Railroad Commission; and (2) a version of FracMax available in the Apple iTunes Store does not work. Following this news, Flotek shares fell $3.50 per share or over 19% to close at $14.60 per share on November 9, 2015, damaging investors.
On November 10, 2015, the Company issued a press release acknowledging data and process errors in the FracMax database and the understatement of production data in the September 11th Presentation. Following this news, Flotek shares fell $5.56 per share or over 38% to close at $9.04 per share on November 10, 2015, further damaging investors.
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