Robbins LLP is Investigating Allegations that FTAI Aviation Ltd. (FTAI) Misled Investors by Manipulating its Financial Statements

Robbins LLP informs investors that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired FTAI Aviation Ltd. (NASDAQ: FTAI) securities between July 23, 2024 and January 15, 2025. FTAI owns and acquires aviation and offshore energy equipment.

The Allegations

According to the complaint, during the class period, defendants failed to disclose to investors: (1) the Company reported one-time engine sales as Maintenance Repair & Overhaul revenue when FTAI only performs limited repair and maintenance work on the engine assets sold; (2) FTAI presents whole engine sales as individual module sales, thereby overstating sales and demand; (3) the Company depreciates engines that are not on lease, which misleadingly lowers the reported cost of goods sold and inflates EBITDA; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. 

The complaint alleges that on January 15, 2025, Muddy Waters Research published a report alleging, among other things, that “FTAI materially manipulates its financials” by “exaggerating the size of its aftermarket aerospace business”, “misleading investors by presenting whole engine sales as individual module sales”, “inflating Aerospace Products’ EBITDA margins by means of over-depreciation in the leasing segment”, and “engaging in channel stuffing.” On this news, FTAI’s stock price fell $37.21, or 24.3%, to close at $116.08 per share on January 15, 2025. 

What Now: You may be eligible to participate in the class action against FTAI Aviation Ltd. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by March 18, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.