Investigations
FTAI Aviation Ltd.
Overview
Overview
- Deadline:
- Mar 18, 2025
| Company Name: | Company Name: FTAI Aviation Ltd. |
| Stock Symbol: | Stock Symbol: FTAI |
FTAI Aviation Ltd. (NASDAQ: FTAI): FTAI Aviation (“FTAI Aviation” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased FTAI Aviation securities. The case is pending in the U.S. District Court for the Southern District of New York and is captioned Shannahan v. FTAI Aviation Ltd., et al., No. 25-cv-00541.
If you incurred losses on your investments in FTAI Aviation, you are encouraged to submit your information.
Why was FTAI Aviation Sued for Securities Fraud?
FTAI Aviation is an integrated full-service provider of aftermarket power and maintenance for commercial jet engines. In its Q3 2024 financial report, FTAI Aviation reported quarterly revenue in its Aerospace Products segment of approximately $303 million, representing an approximately 155% increase over the prior year’s quarter.
The complaint alleges that in reality, the majority of FTAI Aviation’s adjusted EBITDA in the Aerospace Products segment comes from gains on sales, which are less recurring in nature, and that FTAI Aviation engaged in channel stuffing to inflate its 2023 financial results.
The Stock Declines as the Truth is Revealed
On January 15, 2024, prominent investment research firm Muddy Waters published a report titled “FTAI Aviation: Financial Engineering and Accounting Manipulation in the MRO Business.” Based on an investigation that included consulting an industry expert with 20+ years of experience (that was also a former FTAI Aviation executive) and other industry insiders, Muddy Waters claims that FTAI Aviation has been recording one-time engine sales as Maintenance Repair & Overhaul (MRO) revenue in its Aerospace Products segment. Muddy Waters states that this has enabled the company to present a misleading narrative of growth in its Aerospace Products revenue, which has benefited insider sellers. The research firm estimates that the majority of FTAI Aviation’s adjusted EBITDA in the Aerospace Products segment comes from gains on sales, which are less recurring in nature, and that FTAI Aviation engaged in channel stuffing to inflate its 2023 financial results.
The news caused a significant decline in the price of FTAI Aviation stock. On January 15, 2025, the price of the company’s stock fell 24%, from a closing price of $153.29 per share on January 14, 2025, to $116.08 per share on January 15, 2025.
On January 21, 2025, FTAI Aviation announced that its Audit Committee had commenced a review into the Muddy Waters allegations and that its Annual Report may be delayed. This news caused a significant decline in the price of FTAI Aviation stock. On January 21, 2025, the price of the company’s stock fell 23%, from a closing price of $112.38 per share on January 17, 2025, to an opening price of $86.37 per share on January 21, 2025.
What are my Rights?
If you invested in FTAI Aviation, you may ask the Court no later than March 18, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in FTAI Aviation, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
If you incurred losses on your investments in FTAI Aviation, you are encouraged to submit your information.
Why was FTAI Aviation Sued for Securities Fraud?
FTAI Aviation is an integrated full-service provider of aftermarket power and maintenance for commercial jet engines. In its Q3 2024 financial report, FTAI Aviation reported quarterly revenue in its Aerospace Products segment of approximately $303 million, representing an approximately 155% increase over the prior year’s quarter.
The complaint alleges that in reality, the majority of FTAI Aviation’s adjusted EBITDA in the Aerospace Products segment comes from gains on sales, which are less recurring in nature, and that FTAI Aviation engaged in channel stuffing to inflate its 2023 financial results.
The Stock Declines as the Truth is Revealed
On January 15, 2024, prominent investment research firm Muddy Waters published a report titled “FTAI Aviation: Financial Engineering and Accounting Manipulation in the MRO Business.” Based on an investigation that included consulting an industry expert with 20+ years of experience (that was also a former FTAI Aviation executive) and other industry insiders, Muddy Waters claims that FTAI Aviation has been recording one-time engine sales as Maintenance Repair & Overhaul (MRO) revenue in its Aerospace Products segment. Muddy Waters states that this has enabled the company to present a misleading narrative of growth in its Aerospace Products revenue, which has benefited insider sellers. The research firm estimates that the majority of FTAI Aviation’s adjusted EBITDA in the Aerospace Products segment comes from gains on sales, which are less recurring in nature, and that FTAI Aviation engaged in channel stuffing to inflate its 2023 financial results.
The news caused a significant decline in the price of FTAI Aviation stock. On January 15, 2025, the price of the company’s stock fell 24%, from a closing price of $153.29 per share on January 14, 2025, to $116.08 per share on January 15, 2025.
On January 21, 2025, FTAI Aviation announced that its Audit Committee had commenced a review into the Muddy Waters allegations and that its Annual Report may be delayed. This news caused a significant decline in the price of FTAI Aviation stock. On January 21, 2025, the price of the company’s stock fell 23%, from a closing price of $112.38 per share on January 17, 2025, to an opening price of $86.37 per share on January 21, 2025.
What are my Rights?
If you invested in FTAI Aviation, you may ask the Court no later than March 18, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in FTAI Aviation, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.