SAN FRANCISCO, Jan. 16, 2025 (GLOBE NEWSWIRE) -- Shares of FTAI Aviation Ltd. (NASDAQ: FTAI) plunged nearly 25% on Wednesday after activist short seller Muddy Waters Research published a scathing report accusing the company of misleading investors about its financial performance.
Shareholder rights firm Hagens Berman has opened an investigation into the allegations and urges FTAI Aviation investors to submit your losses now.
Visit: www.hbsslaw.com/investor-fraud/ftai
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The Muddy Waters Report
The report alleges that the company has inflated its revenue, particularly in its Aerospace Products (AP) segment, by improperly classifying one-time engine sales as recurring Maintenance, Repair, and Overhaul (MRO) revenue. Muddy Waters asserts that a significant portion of the AP segment's revenue growth stems from the sale of entire engines, which should be classified as asset sales rather than MRO services.
The report estimates that roughly 80% of the AP segment's adjusted EBITDA is derived from gains on sales, primarily from engine sales. Muddy Waters argues that this highlights the company's reliance on asset sales rather than a sustainable, recurring MRO business model. Muddy Waters suggests that the motive behind these alleged misrepresentations is to generate a valuation significantly larger than that of a leasing business.
Furthermore, the report points out that Fortress Investment Group, a major shareholder, sold a substantial amount of stock in a secondary offering in May 2024, potentially benefiting from the inflated valuation driven by the alleged accounting misrepresentations.
Hagens Berman’s Investigation of FTAI
Following the release of the Muddy Waters report, shareholder rights firm Hagens Berman initiated an investigation into FTAI Aviation's financial reporting practices.
“We are investigating whether FTAI has misled investors about its reported revenue growth,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in FTAI and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the FTAI investigation, read more »
Whistleblowers: Persons with non-public information regarding FTAI should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FTAI@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
