NEW YORK, Nov. 10, 2015 /PRNewswire/ -- Bernstein Liebhard LLP is investigating whether Flotek Industries Inc. ("Flotek" or the "Company") (NYSE: FTK) and certain of its officers and/or directors made materially false or misleading statements or omissions regarding the Company's business and prospects in violation of federal securities laws.
Flotek supplies drilling and production products and services to energy and mining industries across the globe. On November 9, 2015, Bronte Capital published a report questioning the validity of the Company's FracMax® analysis and alleging that the Company used false data when speaking to investors during its February 2, 2015 Investor Day presentation by comparing wells using the Company's products with those that do not. Chairman, President and CEO of Flotek, John Chisolm, responded later that day stating that the Company believed its FracMax® database and the associated data "provides an accurate assessment of well performance". Following the publication of the 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, before market open, Flotek admitted that the Company misinterpreted the production data from the FracMax® database and understated the production of three wells in question. This adjustment will impact the magnitude of the outperformance of wells completed using CnF®, or Complex nano-Fluid technology, when compared to the non-CnF® treated wells.
In response to this news, the price of Flotek stock has plummeted over 38% to $8.91 per share in intra-day trading.
If you have lost money in Flotek, are interested in discussing your rights as a Flotek shareholder, and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or email@example.com.
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SOURCE Bernstein Liebhard LLP