FTAI (FTAI) Faces Potential Delay in Filing Annual Report Amid Securities Class Action

Company Overview - FTAI Aviation Ltd is a prominent aviation leasing and financing company listed on NASDAQ under the ticker FTAI [1] Financial Reporting Issues - The company is facing a potential delay in filing its annual report for 2024 due to an internal review prompted by a critical report from short-seller Muddy Waters Research [1][2] - The audit committee has launched a review and engaged independent advisors in response to the allegations [2] Allegations by Muddy Waters Research - Muddy Waters raised concerns about misrepresentation of Maintenance, Repair, and Overhaul (MRO) revenue, specifically alleging that one-time engine sales were reported as MRO revenue despite limited repair work [3] - The short-seller accused the company of inflating sales figures by counting each whole engine sale as three separate module sales, creating a misleading impression of strong customer demand [4] - Muddy Waters also alleged improper depreciation of engines not on lease, which artificially inflated EBITDA [4] Market Impact - 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 [5] - The company's disclosure caused the price of FTAI shares to decline 25% [1] Legal Proceedings - A class action lawsuit has been filed in the Southern District of New York on behalf of investors who purchased FTAI securities between July 23, 2024 and January 15, 2025 [7] - The lawsuit alleges securities fraud by the company and certain key executives, seeking to recover losses for investors [7] Investigation Status - Shareholder rights firm Hagens Berman is investigating the allegations raised by Muddy Waters and the complaint [8] - The firm has secured more than $2.9 billion in cases involving corporate accountability [10]