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.

FTAI said it strongly disagrees with the report's claims, but will likely need time to review them thoroughly as it prepares audited financial statements for fiscal 2024. As a result, the filing of the annual report may be delayed, the company said. FTAI shares dropped 20% to $89.91 in premarket trading.

Citi defends FTAI Aviation after Muddy Waters short report causes 24% share drop; analyst finds key arguments hard to understand.

Shares of FTAI Aviation dropped after a report from short seller Muddy Waters Research accused the company of an alleged accounting manipulation within the company's maintenance, repair and overhaul business. The stock was down 27% to $111.36 in Wednesday trading. Shares have surged 123% over the past 12 months.

Shares of FTAI Aviation plummeted more than 30% on Tuesday after the U.S. aircraft lessor announced that its audit committee would investigate claims of financial irregularities made by short-seller Muddy Waters Research.

FTAI Aviation (NASDAQ:FTAI) dropped 25% in premarket trading after the company's board determined that it will start a review in response to allegations from a Muddy Waters' short report last Wednesday.