Welcome to the FTSI Securities Settlement Website

This website has been established to provide general information related to the proposed settlement of the case known as Carol Glock v. FTS International, Inc., et al., Case No. 4:20-cv-03928 (the "Litigation"), pending before the United States District Court for the Southern District of Texas, Houston Division (the "Court"). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated November 19, 2020, which can be found and downloaded by clicking on the Case Documents tab above. Your rights may be affected by the Settlement if you purchased or otherwise acquired FTS International, Inc. ("FTSI" or the "Company") publicly traded common stock in or traceable to FTSI's February 2, 2018 initial public offering ("IPO"), including all persons who purchased or acquired FTSI common stock during the period between February 2, 2018 and February 21, 2019, inclusive (the “Settlement Class Period”).

The law firms of Robbins Geller Rudman & Dowd LLP and Johnson Fistel, LLP represent you and other Settlement Class Members. You will not be charged for these lawyers. They will be paid from the Settlement Fund to the extent the Court approves their application for fees and expenses. If you want to be represented by your own lawyer, you may hire one at your own expense.

WHAT IS THIS LAWSUIT ABOUT?

As more fully described in the Notice of Pendency and Proposed Settlement of Class Action (the "Notice"), the initial complaint in this action was filed in February 2019 in the 160th Judicial District Court of the State of Texas (“State Court”). On July 15, 2019, the State Court appointed Kendall Law Group, PLLC as liaison counsel and Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) and Johnson Fistel, LLP as interim lead counsel. On September 16, 2020, the Litigation was transferred to the United States Bankruptcy Court for the Southern District of Texas (“Bankruptcy Court”).

Lead Plaintiff’s Amended Petition for Violation of the Securities Act of 1933 and Demand for Jury Trial (the “Amended Petition”) alleges that Defendants violated §§11 and 15 of the Securities Act of 1933 by making materially false statements and omissions in the Registration Statement for FTSI’s February 2, 2018 IPO. Specifically, Lead Plaintiff alleges that the Registration Statement was false and misleading as (among other things) it misrepresented that FTSI was experiencing a surge in demand for its services that no longer existed at the time of the IPO, in part because months before the IPO, FTSI’s controlling shareholder began to drastically scale back related party transactions with FTSI that had inflated the financial results highlighted in the IPO Registration Statement. Additionally, Lead Plaintiff alleges that FTSI’s purportedly steady stream of income promised in the Registration Statement evaporated as customers could and did simply cancel their purportedly “dedicated” contracts. The Amended Petition further alleges that these known adverse trends, which were in existence prior to the IPO, caused FTSI’s business to collapse.

On September 22, 2020, FTSI, FTS Manufacturing, LLC, and FTS International Services, LLC (collectively, the “Debtors”) commenced Chapter 11 cases (the “Chapter 11 Cases”) in the Bankruptcy Court and filed the Plan and a proposed disclosure statement (the “Disclosure Statement”) (Docket No. 17) for the Plan.

On September 24, 2020, the Bankruptcy Court entered an order (the “Solicitation Procedures Order”)(Docket No. 109) conditionally approving the Disclosure Statement for the Plan, and approving certain related solicitation procedures, notices, ballots, and scheduling matters (the “Solicitation Procedures”).

On March 30, 2020, the parties engaged the services of David Murphy of Phillips ADR, an experienced mediator, to facilitate settlement negotiations. On April 29, 2020, the parties engaged in a video conference mediation session with Mr. Murphy. Before the mediation, the parties submitted and exchanged statements with detailed descriptions of their claims and defenses and supporting evidence. The case did not settle, but the parties continued settlement discussions with the assistance of Mr. Murphy. On October 16, 2020, the parties accepted a mediator’s proposal from Mr. Murphy to resolve the Litigation for a cash payment of $9,875,000 to be paid by or on behalf of Settling Defendants, for the benefit of the Settlement Class, subject to the negotiation of the terms of a Stipulation of Settlement and approval by the Court. On October 23, 2020, the Settling Parties entered into a Memorandum of Understanding. On November 18, 2020, the Bankruptcy Court transferred the Litigation to this Court. The Stipulation (together with the Exhibits thereto) reflects the final and binding agreement between the Settling Parties to fully resolve the Litigation.

WHAT DOES THE SETTLEMENT PROVIDE?

The Settlement, if approved, will result in the creation of a cash settlement fund of $9,875,000.00 (the “Settlement Amount”). The Settlement Amount and any interest it earns thereon is the “Settlement Fund.” The Settlement Fund, after deduction of Court-approved attorneys’ fees and expenses, Notice and Administration Expenses, Taxes, and any other fees or expenses approved by the Court, is the “Net Settlement Fund.” If the Settlement is approved by the Court, the Net Settlement Fund will be distributed to eligible Authorized Claimants—i.e., Settlement Class Members who timely submit valid Proofs of Claim—in accordance with the proposed Plan of Allocation.

ADDITIONAL INFORMATION

Although the information in this website is intended to assist you, it does not replace the information contained in the Notice and Stipulation, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

IMPORTANT DATES AND DEADLINES