HOUSTON, April 4, 2017 /PRNewswire/ -- Flotek
Industries Inc. (NYSE: FTK) announced today that the U.S. District
Court for the Southern District of Texas has granted Flotek's motion to dismiss
the securities class action that had been filed against the company
in the U.S. District Court for the Southern District of
Texas.
Plaintiffs alleged that Flotek and its managers intentionally
manipulated third-party data to overstate the efficacy of their
patented Complex nano-Fluid® chemistry products on well performance
in an interactive computer model developed for clients as a value
validation tool.
But U.S. District Judge Alfred H.
Bennett concluded that the plaintiffs failed to show any
deliberate or fraudulent intent by Flotek to manipulate the
data. "Having considered the arguments and the
applicable law, the Court grants Defendant's Motion to Dismiss,"
Judge Bennett wrote in his March 30
ruling.
John W. Chisholm, Chairman and
CEO of Flotek, said he had been confident of the strength of the
company's case.
"This is a resounding victory for Flotek as we continue to
partner with our clients to enhance ultimate recoveries through our
prescriptive chemistry technology and position ourselves for growth
in the rebounding U.S. oil and gas industry," he said.
The case is 4:15-cv-03327 in United States District Court
Southern District of Texas Houston Division.
About Flotek Industries, Inc.
Flotek is a developer
and distributor of prescriptive chemistry-based technology,
including specialty chemicals, to clients in the energy, consumer
industrials and food & beverage industries. Flotek's inspired
chemists draw from the power of solvents and oils of oranges to
deliver solutions that enhance energy production, cleaning
products, foods & beverages and fragrances. In the oil and gas
sector, Flotek serves large and independent energy producers and
oilfield service companies, both domestic and international. Flotek
Industries, Inc. is a publicly traded company headquartered in
Houston, Texas, and its common
shares are traded on the New York Stock Exchange under the ticker
symbol "FTK." For additional information, please visit Flotek's web
site at www.flotekind.com.
Forward-Looking Statements
Certain statements set
forth in this Press Release constitute forward-looking statements
(within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934) regarding
Flotek Industries, Inc.'s business, financial condition, results of
operations and prospects. Words such as expects, anticipates,
intends, plans, believes, seeks, estimates and similar expressions
or variations of such words are intended to identify
forward-looking statements, but are not the exclusive means of
identifying forward-looking statements in this Press Release.
Although forward-looking statements in this Press Release
reflect the good faith judgment of management, such statements can
only be based on facts and factors currently known to management.
Consequently, forward-looking statements are inherently subject to
risks and uncertainties, and actual results and outcomes may differ
materially from the results and outcomes discussed in the
forward-looking statements. Factors that could cause or contribute
to such differences in results and outcomes include, but are not
limited to, demand for oil and natural gas drilling services in the
areas and markets in which the Company operates, competition,
obsolescence of products and services, the Company's ability to
obtain financing to support its operations, environmental and other
casualty risks, and the impact of government regulation.
Further information about the risks and uncertainties that may
impact the Company are set forth in the Company's most recent
filings on Form 10-K (including without limitation in the "Risk
Factors" Section), and in the Company's other SEC filings and
publicly available documents. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only as
of the date of this Press Release. The Company undertakes no
obligation to revise or update any forward-looking statements in
order to reflect any event or circumstance that may arise after the
date of this Press Release.
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SOURCE Flotek Industries, Inc.