WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A.:
- Do you own shares of Flotek Industries, Inc. (NYSE: FTK)?
- Did you lose money in your investment?
Rigrodsky & Long, P.A. announces that it has commenced an investigation of Flotek Industries, Inc. (“Flotek” or the “Company”) for possible violations of the federal securities laws by the Company and certain of its officers and directors.
In a November 9, 2015 report, Bronte Capital stated that Flotek used false data in a comparison of the wells using the Company’s products and wells not using the Company’s products in statements to investors. Following publication of this report, the price of Flotek stock fell almost 20%, or $3.50 per share, to close at $14.60 per share on November 9, 2015.
On November 10, 2015, the Company issued a press release stating, in part, that:
As a result of our initial review of the report we have concluded that the FracMax® database – partly a result of third party data used by Flotek – identified the three wells in question to be contained in units with multiple wells (the state of Texas organizes production reporting by units, or leases, that report total production in the aggregate). The FracMax® application uses algorithms to assign production to individual wells within multiple well units. In this case, the report contends that the wells in question were on single-well units and, as a result, 100% of the production from those units should be assigned to the identified wells. After review of the report, data from the Texas Railroad Commission as well as other third-party data providers, it appears that the wells in question are single-well units.
On the same day Flotek issued this press release, the Company’s stock traded as low as $9.93 per share on intraday trading.
If you purchased shares of Flotek and wish to discuss this investigation, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to firstname.lastname@example.org; or at: http://rigrodskylong.com/investigations/flotek-industries-inc-ftk.
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