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Faruqi & Faruqi Investigates Claims Against FTAI Aviation

Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently investigating allegations regarding FTAI Aviation Ltd. The firm has put out an alert concerning potential claims that could affect investors who acquired securities from the company between July 23, 2024, and January 15, 2025. Investors who suffered any losses during this trading period are strongly encouraged to reach out to James (Josh) Wilson, a partner at the firm, to discuss potential legal options.

The investigation arises amid serious allegations that FTAI Aviation and its executives have violated federal securities laws. It's reported that the company misrepresented financial data on multiple fronts. For instance, there are claims that FTAI falsely categorized revenue from one-time engine sales as Maintenance Repair and Overhaul (MRO) revenue even though the company only engaged in limited maintenance work on those engine assets. Furthermore, it is alleged that FTAI inflated its sales figures by presenting whole engine sales as separate module sales. This misrepresentation, if proven true, significantly distorts the perceived demand and results in a skewed financial picture of the company.

Moreover, the firm reports that FTAI has been depreciating engines that are not currently leased, which misleadingly reduces the cost of goods sold on paper and artificially inflates the company's EBITDA, thus misleading the investors about the overall health and profitability of the organization.

Additionally, a report published by Muddy Waters Research on January 15, 2025, has further fueled the investigation, alleging that FTAI has materially manipulated its financial reports. Findings from this report suggest that the company has been involved in practices such as over-depreciating in its leasing segment, inflating the EBITDA margins of its Aerospace Products, and engaging in channel stuffing. Following these revelations, FTAI's stock price fell by 24.3%, closing at $116.08 on the same day amid unusually heavy trading volume.

As the situation develops, investors are reminded of the deadline to seek the role of lead plaintiff in a federal securities class action that is currently in motion against FTAI. This lead plaintiff will represent the broader class and will be responsible for guiding the litigation. Investors who are part of the potential class may either opt to become a lead plaintiff by reaching out to their chosen counsel or remain as an absent class member. However, it's important to note that participating as lead plaintiff does not affect their ability to recover financial restitution from the outcome of the case.

Faruqi & Faruqi is not only urging affected investors to reach out but also welcomes anyone who possesses additional information regarding FTAI's business practices to come forward. This includes former employees, whistleblowers, shareholders, or anyone else who can provide insight into the company’s operations.

For more information regarding the ongoing situation with FTAI Aviation, you can visit the legal firm's website or directly call partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310). The law firm is committed to confidentiality in all communication, ensuring that the privacy of all involved parties is safeguarded during this investigation process. Legal actions of this magnitude underscore the necessity for transparency and honesty in financial reporting, particularly in publicly traded companies. Stakeholders must remain vigilant as they navigate these complex legal waters.

Stay tuned for updates on this investigation and related developments. Faruqi & Faruqi, LLP is dedicated to providing justice and compensation for investors affected by the alleged misconduct of publicly held companies like FTAI Aviation.