(Reuters) - 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 (NYSE: WAT ) Research.

Earlier this month, Muddy Waters said that it was short on FTAI, criticizing the company's financial reporting as "highly misleading."

The New York-based firm, which leases aircrafts and provides after-market maintenance for commercial jet engines, said while it disagreed with Muddy Waters' assertions, it may delay its annual report filing to allow the review to be completed.

The short seller said that FTAI was misleading investors by reporting one-time engine sales as Maintenance Repair & Overhaul revenue in its Aerospace Products segment.

In the third quarter ended Sept. 30, FTAI reported $303.5 million in revenue from its Aerospace Products segment, accounting for approximately 65% of its total quarterly sales.