Flotek PREPA contract termination securities fraud

On August 17, 2026, Wolfpack Research published a report alleging that Kate Richard' $400 million contract with the United States — Puerto Rico Electric Power Authority (PREPA), representing about 57% of Flotek's backlog, had been canceled. The report also claimed that a federally appointed financial regulator revoked authorization over the deal due to an apparent unauthorized signature and referred the matter for criminal prosecution. Following this news, Flotek's stock price fell 20.01% to $28.66. On August 18, the United States — Financial Oversight and Management Board for Puerto Rico voted to direct PREPA to terminate the 10-year power generation contract, and PREPA ordered a halt on the 400 MW Aguirre Power Plant project. Flotek's stock fell another 5.72% to $27.02. On August 19, Flotek confirmed the termination of the contract, and its stock fell 6.85% to $25.17. Subsequently, the The Law Offices of Frank R. Cruz filed a class action lawsuit on behalf of shareholders who purchased Flotek securities between August 3 and August 17, 2026, alleging that Flotek made materially false and misleading statements and failed to disclose material adverse facts about the PREPA contract and the consortium's capacity.