SOURCE: Kendall Law Group

Kendall Law Group

August 10, 2009 13:00 ET

Kendall Law Group Announces Securities Class Action Against Flotek Industries, Inc.

DALLAS, TX--(Marketwire - August 10, 2009) - Kendall Law Group, led by a former federal judge and former US Attorney, today announced that a lawsuit has been filed against Flotek Industries, Inc. (NYSE: FTK) for investors who purchased stock that was artificially inflated between May 8, 2007 and January 23, 2008.

Any shareholder, who purchased Flotek stock during the above time period, may move the Court to serve as lead plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by October 6, 2009. A lead plaintiff is a class member who acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

According to the complaint, filed in the Southern District of Texas, defendants failed to disclose material adverse facts about the company's true financial condition, business and prospects. The company was experiencing weakness in its Rocky Mountain sales region due to its decision not to cut prices to the level of its competitors. Also, the Company's operating profit margins were being negatively impacted as customers increasingly opted to rent equipment instead of purchasing it and the Company's chemicals division was declining due to a decrease in fracing activity. As a result of the foregoing, defendant's positive statements concerning the Company's guidance and prospects were lacking in a reasonable basis at all relevant times.

On October 31, 2007, Flotek announced its financial results for the third quarter of 2007. That same day, the company held a conference call with investors and analysts, during which it was revealed that all three of the Company's segments were negatively affected by lower gas prices in the Rocky Mountains. In response to this announcement, the price of Flotek common stock fell $14.35 per share, or 28%, to close at $36.45 per share, on November 29, 2007, on heavy trading volume. In light of the fall of their stock prices, Defendants continued to conceal the full extent of the problems at the Company. On January 23, 2008, the Company announced that they were revising the previously announced guidance for the year ending December 31, 2007. In response to this announcement the price of Flotek common stock fell $7.60 per share to close at $17.86 per share, on January 24, 2008, on heavy trading volume.

Although every case is different, Kendall Law Group has participated in the recovery of over $800 million for defrauded shareholders. Led by a former federal judge and former U.S. Attorney, the firm has the credentials to pursue any type of complex securities litigation in the nation. If you wish to learn more about your rights as a shareholder or serving as a lead plaintiff, contact attorney Hamilton Lindley at 877-744-3728 or hlindley@kendalllawgroup.com.

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