SEC looking into Flotek

Flotek Industries, a supplier of equipment and materials for hydraulic fracking, said the U.S. Securities and Exchange Commission is investigating its FracMax software and the efficacy of one of the company’s chemicals.

The company has also formed a special committee of independent directors to lead a review of issues related to FracMax and its so-called complex nano-fluid, Houston-based Flotek said Tuesday in a statement.

Flotek’s shares plunged in November after investment firm Bronte Capital Management questioned the reliability of its data and the company hired an independent team to verify the numbers.