SAN FRANCISCO, Jan. 22, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI), a prominent aviation leasing and financing company, is facing a potential delay in filing its annual report for 2024 after a critical report from a well-known short-seller prompted an internal review. The company’s disclosure caused the price of FTAI shares to decline 25%.
Shareholder rights firm Hagens Berman urges FTAI Aviation investors to submit your losses now.
Class Period: July 23, 2024 – Jan. 15, 2025
Lead Plaintiff Deadline: Mar. 18, 2025
Visit: www.hbsslaw.com/investor-fraud/ftai
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FTAI’s Potential Delayed Filing of its Annual Report
The company announced on Jan. 18th that its audit committee had launched a review, engaging independent advisors, in response to allegations made in a Jan. 15th report by activist short seller Muddy Waters Research.
Muddy Waters, known for its in-depth research and bets against companies it deems overvalued or fundamentally flawed, raised concerns about misrepresenting its Maintenance, Repair, and Overhaul (MRO) revenue. In particular, FTAI allegedly reported one-time engine sales as MRO revenue, despite only performing limited repair and maintenance work on the engines sold.
Muddy Waters also alleges that the company inflates its sales figures. Specifically, Muddy Waters accuses the company of deceptively counting each whole engine sale as three separate module sales, artificially boosting sales volumes and creating a misleading impression of strong customer demand.
Further, Muddy Waters alleges that FTAI improperly depreciates engines that are not on lease, which artificially inflates its earnings before interest, taxes, depreciation, and amortization (EBITDA).
Following the release of the Muddy Waters Report, FTAI's stock price plummeted by 24.3%, losing $37.21 per share on unusually heavy trading volume.
FTAI strongly refuted the claims made in the short-seller’s report. However, the timing of the report, just as the company was finalizing its audited financial statements for the fiscal year 2024, has created complications.
“In view of the timing of the Short-Seller Report relative to the preparation of the Company’s audited financial statements for fiscal year 2024, and the potential time required for any review of this nature, the Company cannot rule out the possibility that the filing of Company’s Annual Report on Form 10-K for fiscal year 2024…may be delayed,” FTAI stated in a release.
FTAI Securities Litigation
FTAI’s most recent disclosure comes on the heels of a class action brought on behalf of investors in FTAI, alleging the company and certain of its key executives engaged in securities fraud.
The lawsuit, which was filed in the Southern District of New York and brought on behalf of investors who purchased FTAI securities between July 23, 2024 – Jan. 15, 2025, seeks to recover losses for investors who suffered financial harm due to FTAI's alleged fraudulent conduct.
Shareholder rights firm Hagens Berman is currently investigating the complaint’s allegations. “The allegations raised by Muddy Waters and the complaint are serious and warrant a thorough investigation. We will be working diligently to uncover the truth and protect the interests of investors,” 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
