| COMPANY |
FTAI Aviation Ltd. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
1:25-cv-00541 |
| JUDGE |
The Hon. Jeannette Anne Vargas |
| CLASS PERIOD |
July 23, 2024 through January 15, 2025 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS MARCH 18, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
The Class Period begins on July 23, 2024. On that day, FTAI announced its second quarter 2024 financial results in a press release for the period ended June 30, 2024. Specifically, the press release reported FTAI’s financial results and touted the company’s business highlights, including that Aerospace Products reached a “new Adjusted EBITDA high of $91.2mm for Q2.” The release also stated that FTAI “utilizes Adjusted EBITDA as our key performance measure” as it “provides the CODM [Chief Operating Decision Maker] with the information necessary to assess operational performance, as well as make resource and allocation decisions.” Moreover, the press release purported to report FTAI’s relevant key financial metrics including: adjusted EBITDA, aerospace products revenue, maintenance revenue, asset sales revenue, lease income cost of sales, the value of leasing and inventory assets, and depreciation and amortization expenses.
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.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) FTAI 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), 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.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.