US district court dismisses lawsuit against Flotek
HOUSTON -- Flotek Industries Inc. announced that the US 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 US 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 US 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 US oil and gas industry," he said.
The case is 4:15-cv-03327 in United States District Court Southern District of Texas Houston Division.
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