According to the law firm press release, FLY, together with its subsidiaries, engages in purchasing and leasing commercial aircraft under multi-year contracts to various airlines worldwide. As of December 31, 2014, the Company’s aircraft portfolio consisted of 127 commercial jet aircraft, including 116 narrow-body passenger aircraft and 11 wide-body passenger aircraft.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) during fiscal years 2014 and 2015, FLY had engaged in improper accounting with respect to intangible assets and liabilities for aircraft acquired with in-place leases; and (ii) as a result of the foregoing, FLY’s public statements were materially false and misleading at all relevant times.
On March 8, 2016, FLY disclosed that the Company and the Securities and Exchange Commission (“SEC”) were discussing FLY’s accounting policy for business combinations, including FLY’s accounting policy for intangible assets and liabilities for aircraft acquired with in-place leases. FLY stated that “if it is determined after the conclusion of the [SEC’s] review that FLY should separately recognize other intangible assets or liabilities from what has been previously recorded, the impact could be material to FLY’s previously issued consolidated financial statements and require modification to its accounting for the current and prior year results,” and that, “as a result of the ongoing discussions with the [SEC], FLY may not be able to timely file its Annual Report on Form 20-F for the year ended December 31, 2015.”
On this news, FLY stock fell $1.12 per share, or 8.2%, to close at $12.47 on March 8, 2016.
On July 20, 2016, the Court issued an Order appointing Lead Plaintiff and approving Lead Counsel.
On September 22, 2016, the parties filed a Stipulation of Voluntary Dismissal of this case.