Berger Montague Investigates Securities Fraud Claims Against CTO Realty Growth Following Class Action Lawsuit

Berger Montague PC Investigates Securities Claims Against CTO Realty Growth

Berger Montague PC, a respected name in securities litigation, has recently announced the initiation of an investigation regarding possible securities fraud claims related to CTO Realty Growth, Inc. (NYSE: CTO). This inquiry comes on the heels of a class action lawsuit filed on behalf of investors who purchased, or otherwise acquired, CTO securities during the period from February 18, 2021, to June 24, 2025.

Allegations of Financial Misconduct

The lawsuit centers around allegations first reported on June 25, 2025, where Wolfpack Research accused CTO of manipulating its financial statements. According to the report, CTO allegedly concealed a significant dividend shortfall of $38 million through considerable dilution of its stock. Furthermore, the report claimed that the company excluded vital recurring capital expenditures from its Adjusted Funds From Operations (AFFO), a crucial measure of REIT profitability.

In addition to these claims, the report pointed to what was described as a "sham loan" employed by CTO to obscure a substantial failure from one of its key tenants at the Ashford Lane property. This series of allegations has cast a shadow over the company's financial practices and raised serious concerns among its investors.

Immediate Impact on Stock Value

Following the release of these allegations, CTO’s stock experienced a sharp decline, falling nearly 6% to close at $17.10 per share on June 25, 2025. This rapid decrease has raised red flags among investors and has prompted Berger Montague to urge those affected to examine their legal options and consider taking action against the company.

Investors' Call to Action

Investors who acquired CTO securities within the specified time frame have until October 7, 2025, to seek appointment as lead plaintiff representatives in the class action lawsuit. This is a crucial step for investors looking to assert their rights amidst the unfolding situation at CTO Realty Growth. More information about the process of joining the lawsuit or seeking legal counsel can be found through Berger Montague’s dedicated channels.

About Berger Montague

Since its establishment in 1970, Berger Montague has emerged as a pioneer in the arena of securities class action litigation, consistently representing both individual and institutional investors across multiple cases. With an extensive network of offices located in major U.S. cities, including Philadelphia, Minneapolis, and San Diego, the firm boasts a wealth of expertise in securities law.

For further details or inquiries regarding the situation with CTO Realty Growth, investors are encouraged to contact the firm directly. Andrew Abramowitz and Caitlin Adorni have been designated as points of contact for those seeking assistance related to this case.

In closing, the unfolding developments at CTO Realty Growth serve as a potent reminder of the importance of vigilance in the rapidly moving world of securities investment, as well as the necessity for investors to be informed and proactive when facing potential legal action.

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