Core Viewpoint - A lawsuit has been filed against FTAI Aviation Ltd. and its senior executives for potential violations of federal securities laws, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [1][2]. Company Overview - FTAI Aviation is an integrated full-service provider of aftermarket power and maintenance for commercial jet engines [3]. Financial Performance - In Q3 2024, FTAI Aviation reported quarterly revenue of approximately $303 million in its Aerospace Products segment, marking a 155% increase compared to the same quarter the previous year [3]. Allegations and Concerns - The lawsuit alleges that FTAI Aviation's adjusted EBITDA in the Aerospace Products segment is primarily derived from gains on sales, which are less recurring, and that the company engaged in channel stuffing to inflate its 2023 financial results [4][5]. - A report by Muddy Waters claims that FTAI Aviation has misclassified one-time engine sales as Maintenance Repair & Overhaul (MRO) revenue, misleading investors about growth in its Aerospace Products revenue [5]. Stock Market Reaction - Following the publication of the Muddy Waters report on January 15, 2025, FTAI Aviation's stock price dropped 24%, from $153.29 on January 14, 2025, to $116.08 on January 15, 2025 [6]. - On January 21, 2025, after FTAI Aviation announced an internal review of the allegations, its stock price fell 23%, from $112.38 on January 17, 2025, to an opening price of $86.37 on January 21, 2025 [7].
FTAI FRAUD LAWSUIT: FTAI Aviation Ltd. Investors that Lost Money may have been affected by Fraud -- Contact BFA Law by March 18 Class Action Deadline (NASDAQ:FTAI)