FTAI Aviation(FTAI) GlobeNewswire News Room·2025-02-27 00:54Core Viewpoint - FTAI Aviation Ltd. dismissed allegations from short-sellers Muddy Waters and Snowcap Research as "without merit," but did not provide detailed rebuttals, raising concerns about the transparency of its internal review process [1][2][3]. Group 1: Allegations and Responses - Muddy Waters' report, released on January 15, 2025, led to a 24% drop in FTAI's stock price and initiated an internal review [4]. - The allegations include improper classification of one-time engine sales as Maintenance, Repair & Overhaul (MRO) revenue, which Muddy Waters claims inflates revenue figures and misleads investors [5]. - Snowcap Research corroborated many of Muddy Waters' findings, describing FTAI's Aerospace segment as "in substance an elaborate fabrication" [7]. Group 2: Internal Review and Audit Committee Findings - FTAI's Audit Committee, after a review by independent advisors, concluded that the short-seller claims lacked foundation, but did not address specific allegations [2][3]. - The company announced it expects to file its Form 10-K on time, asserting that the allegations are unsupported [3]. Group 3: Legal and Investor Implications - FTAI is facing a class-action lawsuit in the Southern District of New York, alleging securities fraud based on the claims made by Muddy Waters [8]. - The lawsuit seeks to recover losses for investors who purchased FTAI securities between July 23, 2024, and January 15, 2025 [8].