SAN DIEGO, Jan. 29, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired FTAI Aviation Ltd. (NASDAQ: FTAI) (“FTAI” or the “Company”) securities between July 23, 2024 and January 15, 2025 (the “Class Period”), charging the Company and certain senior executives with violations of the federal securities laws (collectively, “Defendants”).
FTAI investors have until March 18, 2025 to seek appointment as lead plaintiff of the FTAI class action lawsuit.
If you purchased or acquired FTAI securities between July 23, 2024 and January 15, 2025, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/ftai/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Ruben Peña by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
FTAI owns, maintains, and leases commercial jet engines, and operates in two segments: Aviation Leasing and Aerospace Products. Through its Aviation Leasing segment, FTAI owns and manages aircraft and aircraft engines through which it leases and sells these assets to customers. Through its Aerospace Products segment, FTAI allegedly develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines.
The FTAI lawsuit alleges that Defendants issued false and misleading statements and/or concealed material adverse facts concerning FTAI’s business, operations, and prospects during the Class Period. Specifically, Defendants failed to disclose to investors: (1) FTAI reported one-time engine sales as Maintenance Repair & Overhaul (“MRO”) revenue when the Company only performs limited repair and maintenance work on the engine assets sold; (2) FTAI presents whole engine sales as individual module sales, overstating its sales and demand; and (3) FTAI depreciates engines that are not on lease, misleadingly lowering the reported cost of goods sold and inflating the Company’s main performance metric.
The truth began to emerge on January 15, 2025, when Muddy Waters Research published a critical research report titled “FTAI Aviation: Financial Engineering and Accounting Manipulation in the MRO Business,” alleging, among other things, that “FTAI is exaggerating the size of its aftermarket aerospace business” by “[i]nflating Aerospace Products’ EBITDA margins by means of over-depreciation in the leasing segment.” According to the report, FTAI “is misleading investors by reporting one-time engine sales as [MRO] revenue in its Aerospace Products (AP) segment” to “generate a valuation materially greater than that of a leasing business.”
On this news, the price of FTAI common stock fell by $37.21 per share, or 24.27%, from a closing price of $153.29 per share on January 14, 2025, to a closing price of $116.08 per share on January 15, 2025.
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