FTAI Aviation Ltd. Faces Share Price Decline Following Muddy Waters Report on Sanctions Allegations

SAN FRANCISCO, March 16, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. FTAI experienced a notable drop in its shares on March 3, 2025, after a report from Muddy Waters Research raised concerns about potential violations of U.S. sanctions against Iran. This report has led to a securities class action lawsuit, known as Shannahan v. FTAI Aviation Ltd. et al., No. 1:25-cv-00541 (S.D.N.Y.), which aims to represent investors who bought FTAI securities between July 23, 2024, and January 15, 2025.

Hagens Berman, the firm behind the class action, is continuing its investigation into these claims. They encourage FTAI Aviation investors who have incurred significant losses to submit your losses now.

The Recent Muddy Waters Report

In a recent update, Muddy Waters Research published a second report on March 3, 2025, titled "FTAI Could Be Violating U.S. Sanctions Against Iran." The report highlighted images found on LinkedIn, showing FTAI-branded boxes at Sorena Turbine, an aircraft Maintenance, Repair & Overhaul (MRO) company based in Tehran. Muddy Waters remarked, "It's unclear to us whether this was a one-off or part of a pattern of widespread prohibited conduct."

The Initial Allegations and Responses

The first Muddy Waters report, released on January 15, 2025, caused FTAI's stock to tumble by 24%. Following this report, the company’s Audit Committee announced a review of the allegations.

According to Muddy Waters, the investigation, which included insights from a former FTAI executive and other industry figures, claimed that FTAI was misclassifying one-time engine sales as MRO revenue within its Aerospace Products segment. This practice supposedly inflated the revenue figures, misleading investors and benefiting company insiders through sales. Muddy Waters suggested that much of FTAI's adjusted EBITDA in this area came from non-recurring gains and alleged that the company might have used channel stuffing to boost its 2023 financial results.

On January 21, 2025, FTAI publicly stated that its Audit Committee was looking into the Muddy Waters claims and that the annual report might face delays. This announcement led to an additional 23% decline in FTAI's stock price.

The situation escalated on January 29, 2025, when Snowcap Research published its findings, echoing many of the concerns raised by Muddy Waters. Snowcap described FTAI's Aerospace segment as “in substance an elaborate fabrication” and mentioned that former FTAI executives, experts, and competitors expressed confusion over the company's accounting and disclosures.

Details on the Class Action Lawsuit

The ongoing class action lawsuit aligns closely with claims brought forward in Muddy Waters' initial report. It accuses FTAI of making false and misleading statements and failing to disclose crucial information, including:

• Misclassifying one-time engine sales as MRO revenue while performing limited maintenance work;
• Presenting complete engine sales as individual module sales, thereby exaggerating sales and demand;
• Inaccurate depreciation of engines not on lease, misleadingly lowering the cost of goods sold and inflating EBITDA.

Investors who have suffered significant losses from investing in FTAI or those who possess information that could support the investigation are encouraged to submit your losses now.

For more information and to address frequently asked questions about the FTAI case, you may read more.

Whistleblower Information

Individuals with non-public information regarding FTAI are encouraged to consider their options for assisting with the investigation or utilizing the SEC Whistleblower program. This program allows whistleblowers who provide original information to potentially receive rewards amounting to 30 percent of any successful recovery made by the SEC. For further details, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman

Hagens Berman is a global litigation firm focused on protecting the rights of plaintiffs and ensuring corporate accountability. The firm has a strong track record representing investors, whistleblowers, and other affected parties by securing over $2.9 billion in settlements related to corporate misdeeds. More information about their history and successes can be found on their website.

Stay updated with their news and insights on @ClassActionLaw.

FTAI, MuddyWaters, lawsuit