FTAI Aviation(FTAI) Prnewswire·2025-01-23 18:54Core Viewpoint - FTAI Aviation Ltd. is under investigation for potential securities law violations, with allegations of misleading financial reporting practices that have led to significant stock price declines [2][4][5]. Group 1: Allegations Against FTAI - The complaint against FTAI alleges that the company reported one-time engine sales as Maintenance Repair & Overhaul revenue, despite only performing limited repair and maintenance work on the sold engine assets [4]. - FTAI is accused of misrepresenting whole engine sales as individual module sales, which has resulted in overstated sales and demand figures [4]. - The company reportedly depreciates engines not on lease, misleadingly lowering the reported cost of goods sold and inflating EBITDA [4]. - Positive statements made by FTAI regarding its business operations and prospects are claimed to be materially misleading and lacking a reasonable basis due to the aforementioned practices [4]. Group 2: Market Reaction - Following the release of a report by Muddy Waters Research on January 15, 2025, which accused FTAI of manipulating its financials, the company's stock price fell by 116.08 per share on unusually heavy trading volume [5][6]. Group 3: Legal Proceedings - Investors who purchased FTAI securities between July 23, 2024, and January 15, 2025, are encouraged to discuss their legal rights, with a deadline of March 18, 2025, to seek the role of lead plaintiff in a federal securities class action [2][7]. - The lead plaintiff is defined as the investor with the largest financial interest in the relief sought, who will direct and oversee the litigation on behalf of the class [7].