Shannahan v. FTAI Aviation Ltd.

Labaton Keller Sucharow serves as Co-Lead Counsel in a securities class action against FTAI Aviation Limited (FTAI or the Company) and certain of its officers (collectively, Defendants), alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Act of 1995, and Rule 10b-5 promulgated thereunder.  

FTAI is an aviation leasing and maintenance company with two business segments: Aviation Leasing, which focuses on the leasing and sales of aircraft and jet engines to its airline customers, and Aerospace Products, which focuses on the exchange and/or repair of its airline customers’ jet engines.

On July 17, 2025, the court appointed Boston Retirement System and the City of Hollywood Firefighters Pension Fund as Lead Plaintiffs and Labaton Keller Sucharow as Co-Lead Counsel in the action.  On September 18, 2025, Lead Plaintiffs filed an Amended Class Action Complaint alleging that between July 23, 2024, and January 21, 2025, inclusive (the Class Period), Defendants knowingly employed deceptive accounting practices in order to report a fraudulently inflated Aerospace Products’ EBITDA to the investing public.  

Leading up to the Class Period, Defendants touted Aerospace Products as a rapidly growing, sustainable business that would drive the Company’s future growth.  On July 23, 2024, Defendants issued materially false and misleading EBITDA results and guidance in connection with FTAI’s release of Q2 2024 financial results.  The Amended Complaint alleges that the purported growth of Aerospace Products’ EBITDA was illusory and had the intended effect of artificially inflating FTAI’s share price throughout the Class Period.  

The truth about Defendants’ scheme to inflate financial performance was revealed on January 15, 2025, when a prominent investment research firm published a report alleging that FTAI was “materially manipulat[ing] its financials” to artificially inflate the results of the Aerospace Products segment.  In response to the allegations, the price of FTAI shares plummeted $37.21 per share, or approximately 24%, from a close of $153.29 per share on January 14, 2025, to close at $116.08 per share on January 15, 2025.  On January 21, 2025, FTAI announced that an audit committee of the Board of Directors would commence a review in response to the allegations.  On this news, the price of FTAI shares further declined by $28.59 per share, or approximately 25%, from a close of $112.38 per share on January 17, 2025, to close at $83.79 per share on January 21, 2025.  

The case is Shannahan v. FTAI Aviation Ltd., No. 25-cv-00541 (S.D.N.Y).  Labaton Keller Sucharow represents Lead Plaintiff Boston Retirement System.