FTAI Aviation (FTAI) Shares Plummet After Muddy Waters Report Alleges Misleading Accounting – Hagens Berman

Core View - FTAI Aviation Ltd's shares dropped nearly 25% following a report by Muddy Waters Research accusing the company of misleading investors about its financial performance [1] - The report alleges improper revenue classification in the Aerospace Products (AP) segment, inflating revenue by classifying one-time engine sales as recurring MRO revenue [2] - Muddy Waters estimates that 80% of the AP segment's adjusted EBITDA comes from gains on sales, primarily engine sales, suggesting reliance on asset sales rather than a sustainable MRO business model [3] - Fortress Investment Group, a major shareholder, sold a significant amount of stock in May 2024, potentially benefiting from the alleged inflated valuation [4] Muddy Waters Report Allegations - The report claims FTAI Aviation misrepresented revenue growth by improperly classifying one-time engine sales as recurring MRO revenue in the AP segment [2] - Approximately 80% of the AP segment's adjusted EBITDA is derived from gains on sales, primarily engine sales, indicating a reliance on asset sales rather than a sustainable MRO business model [3] - The alleged misrepresentations may have been aimed at generating a valuation larger than that of a leasing business [3] Hagens Berman Investigation - Hagens Berman, a shareholder rights firm, has initiated an investigation into FTAI Aviation's financial reporting practices following the Muddy Waters report [5] - The investigation focuses on whether FTAI Aviation misled investors about its reported revenue growth [5] - Investors with substantial losses or relevant information are urged to participate in the investigation [5] About Hagens Berman - Hagens Berman is a global plaintiffs' rights complex litigation firm specializing in corporate accountability [6] - The firm has secured over $2 9 billion in cases involving corporate negligence and wrongdoing [6]