Muddy Waters Report Triggers Lawsuit Against FTAI Aviation (FTAI) – Hagens Berman

FTAI Investors with Losses Encouraged to Contact the Firm

SAN FRANCISCO, Jan. 20, 2025 (GLOBE NEWSWIRE) -- A class-action lawsuit has been filed against FTAI Aviation Ltd. (NASDAQ: FTAI) and certain of its executives, alleging securities fraud. The complaint, filed in the Southern District of New York, seeks to recover losses for investors who purchased FTAI securities between July 23, 2024, and January 15, 2025.

Shareholder rights firm Hagens Berman is investigating the complaint’s allegations and urges FTAI Aviation investors to submit your losses now.

Class Period: July 23, 2024 – Jan. 15, 2025
Lead Plaintiff Deadline: Mar. 18, 2025
Visit: www.hbsslaw.com/investor-fraud/ftai
Contact the Firm Now: FTAI@hbsslaw.com
844-916-0895

The FTAI Securities Litigation

The lawsuit alleges that throughout this period, FTAI made materially false and misleading statements to investors regarding its financial performance. Specifically, the complaint accuses the company of:

• Misrepresenting Maintenance, Repair, and Overhaul (MRO) revenue: FTAI allegedly reported one-time engine sales as MRO revenue, despite only performing limited repair and maintenance work on the engines sold.
  
• Inflating sales figures: The company is accused of deceptively counting each whole engine sale as three separate module sales, artificially boosting sales volumes and creating a misleading impression of strong customer demand.
  
• Misleadingly lowering costs: FTAI allegedly depreciates engines that are not on lease, which artificially inflates its earnings before interest, taxes, depreciation, and amortization (EBITDA).
  

These alleged misrepresentations were brought to light on January 15, 2025, when the prominent short-selling firm Muddy Waters Research published a scathing report. The report accused FTAI of "materially manipulating its financials" through various accounting maneuvers, including those outlined above.

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.

The lawsuit seeks to recover losses for investors who suffered financial harm due to FTAI's alleged fraudulent conduct.

Shareholder rights firm Hagens Berman is currently investigating the complaint’s allegations. “The Muddy Waters report raises serious concerns about the company’s accounting practices and whether investors were provided with a true and accurate picture of FTAI's financial performance,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in FTAI and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the FTAI case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding FTAI should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FTAI@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

Contact:
Reed Kathrein, 844-916-0895