Grabar Law Office is investigating potential claims on behalf of long-term shareholders of Flotek Industries, Inc. (NYSE: FTK) concerning possible breaches of fiduciary duty and other corporate governance issues relating to the Company's recently terminated Puerto Rico Electric Power Authority ("PREPA") project.

Flotek Industries, Inc. operates as a chemical and data analytics company in the United States, the United Arab Emirates, and internationally. It operates in two segments, Chemistry Technologies (CT) and Data Analytics (DA).

On August 26, 2026, a securities class action was filed against Flotek and certain of its senior officers alleging violations of the federal securities laws. The complaint alleges that Flotek made materially false and/or misleading statements and failed to disclose material information concerning a 10-year agreement associated with a 400-megawatt natural gas-fired power generation project for PREPA.

According to the complaint, Flotek announced on August 3, 2026 that it had entered into a 10-year agreement to support the PREPA project and expected the arrangement to generate approximately $400 million in potential revenue backlog. Flotek subsequently highlighted the contract in its quarterly financial results, investor materials and Form 10-Q.

The complaint alleges, however, that there were significant questions concerning the experience, organization and financial capacity of certain members of the consortium responsible for the underlying PREPA project. The complaint further recounts allegations that Enchanted Rock, LLC—an entity whose participation allegedly had been relied upon in evaluating the project—later stated that it was not participating in the project and that its name and signature had been used without authorization.

According to Flotek's subsequent public disclosures, the Financial Oversight and Management Board for Puerto Rico ultimately revoked its approval of the underlying power-generation contract and directed PREPA to terminate it. Flotek further disclosed that certain allegations concerning the procurement process had been referred to the Puerto Rico Department of Justice and corresponding federal authorities.

On August 19, 2026, Flotek announced that PREPA had formally terminated the underlying Power Purchase and Operating Agreement, effective immediately. According to Flotek, PREPA identified two independent grounds for termination: the consortium's failure to provide required performance security within the contractual timeframe and the Oversight Board's revocation of its approval.

The securities complaint alleges that Flotek investors were not adequately informed of material risks surrounding the project and that Flotek's positive statements concerning the PREPA agreement were materially misleading or lacked a reasonable basis.

Grabar Law Office's Investigation

Grabar Law Office is investigating whether Flotek's directors and officers adequately discharged their fiduciary duties in connection with these events, including whether:

• appropriate due diligence was performed before Flotek assumed significant responsibilities in the PREPA project;
• Company leadership adequately investigated or responded to potential warning signs concerning the project's consortium participants;
• material information concerning the project was timely escalated to Flotek's Board of Directors;
• Flotek maintained adequate internal controls, disclosure controls and risk-management procedures concerning significant new contractual commitments;
• the Board appropriately oversaw Flotek's expansion into infrastructure-scale power-generation services, an area the Company itself described as an emerging line of business with limited operating history; and
• Flotek suffered harm as a result of any failures of oversight, disclosure, internal controls or corporate governance.

The investigation concerns potential claims belonging to Flotek itself, rather than claims seeking recovery for investors who purchased shares at allegedly inflated prices. Shareholder derivative actions can seek to recover damages for the Company and may also seek corporate-governance reforms designed to address the practices that allegedly permitted the underlying misconduct to occur.

Flotek Shareholders

If you have continuously owned Flotek Industries, Inc. (NYSE: FTK) shares since before August 3, 2026, you may be able to pursue claims on behalf of the Company, including corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever through a shareholder governance action. Please contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085 to learn more.

Alternatively, if you purchased shares between August 3, 2026 and August 17, 2026, you can participate in the class action.

Grabar Law Office represents shareholders in corporate governance and shareholder derivative matters nationally and is investigating the circumstances surrounding Flotek's PREPA project and the Company's oversight and disclosure practices.