Flotek Industries faces a securities class action lawsuit over alleged violations of Federal Securities Laws on behalf of purchasers of the common stock of Flotek Industries, Inc. (NYSE:FTK) between May 8, 2007 and January 23, 2008. An investigation on behalf of current long term investors in Flotek Industries, Inc. (Public, NYSE:FTK) concerning possible shareholder claims was announced.

An investor in Flotek Industries has filed a proposed securities class action lawsuit in the United States District Court for the Southern District of Texas on behalf of purchasers of the common stock of Flotek Industries, Inc. (Flotek or the Company) (NYSE:FTK) between May 8, 2007 and January 23, 2008 concerning alleged violations of federal securities laws by Flotek Industries, Inc. (NYSE:FTK). According to the complaint the plaintiff alleges Flotek Industries and certain of its executives violated the Exchange Act by failing to disclose between May 8, 2007 and January 23, 2008 material adverse facts about Floteks true financial condition, business and prospects, like, among other things Floktek was experiencing weakness in its Rocky Mountain sales region due to its decision to not cut prices to the level of its competitors or Flotek sales in its chemicals division were declining due to a decrease in fracing activity.

On October 31, 2007, Flotek Industries announced its financial results for the third quarter of 2007, the period ended September 30, 2007. That same day Flotek Industries held a conference call with investors and analysts, during which it announced, among other things, that all three of its segments were negatively affected by lower gas prices in the Rocky Mountains. In response to this announcement, so the lawsuit, 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. The plaintiff alleges that the defendants, however, continued to conceal the full extent of the problems at Flotek Industries. Then, on January 23, 2008, Flotek Industries announced that it was revising its previously announced guidance for the year ending December 31, 2007 and in response to this announcement, the price of Flotek common stock fell $7.60 per share, or 30%, to close at $17.86 per share, on January 24, 2008, on heavy trading volume, so the lawsuit.

Flotek Industries, Inc., located in Houston, Texas, is supplying drilling and production related products and services to the energy and mining industries. Floteks core focus is oilfield specialty chemicals and logistics, downhole drilling tools and downhole production tools. Flotek reported in 2007 Total Revenue of $158.01million with a Net Income of $11.35million and in 2008 Total Revenue of $226.06million. Shares of Flotek Industries, Inc. (NYSE:FTK) traded recently at $2.08 per share, down from a 52weekHigh of 19.02 per share.