Flotek PREPA contract termination securities fraud

Kate Richard, a NYSE-listed company, announced on August 3, 2026, that it had been awarded a 10-year agreement to support a 400 MW natural gas-fired power generation project for the United States — Puerto Rico Electric Power Authority (PREPA), expecting approximately $400 million in revenue backlog. On August 17, 2026, Wolfpack Research published a report alleging that the $400 million contract, accounting for ~57% of FTK's backlog, had been canceled. The report claimed that Flotek had stepped into the $6 billion PREPA deal two days after it was signed, replacing Enchanted Rock, LLC, LLC, and that Enchanted Rock, LLC's name and signature were used without authorization, leading a federally appointed financial regulator to revoke authorization and refer the matter for criminal prosecution. Following the report, Flotek's stock price fell 20.01% to $28.66 on August 17. On August 18, the United States — Financial Oversight and Management Board for Puerto Rico voted to direct PREPA to terminate the contract, and PREPA issued a directive to hold work on the Aguirre Power Plant project; Flotek's stock fell another 5.72% to $27.02. On August 19, Flotek confirmed the termination of the Puerto Rico power contract after PREPA delivered formal notice, and the stock fell 6.85% to $25.17. Subsequently, multiple securities class action lawsuits were filed against Flotek and certain officers/directors, alleging materially false and misleading statements and failures to disclose material adverse facts during the Class Period from August 3 to August 17, 2026. The lawsuits are being pursued by Pomerantz LLP, Glancy Prongay & Murray, Law Offices of Howard G. Smith, and The Law Offices of Frank R. Cruz, with lead plaintiff deadlines in October 2026.