#USA #Los Angeles #Schall Law Firm #Securities Fraud #CTO Realty

CTO Realty Growth Investors Can Take Action Against Potential Fraud

Introduction

Investors in CTO Realty Growth, Inc. (CS: CTO) face an important opportunity to take action following allegations of securities fraud that have emerged against the company. The Schall Law Firm has initiated a class action lawsuit for investors who purchased securities between February 18, 2021, and June 24, 2025. The case will focus on possible violations of the Securities Exchange Act of 1934, including significant financial misrepresentations that may have inflated the company's perceived value and misled shareholders.

Background on CTO Realty Growth

CTO Realty Growth, Inc. is a publicly traded real estate investment trust (REIT) that has been active in the property management and investment sector. It garnered investor interest due to consistent dividend payments and a perceived robust business model centered around its Ashford Lane property. However, recent allegations suggest that despite these positive indicators, CTO has not maintained its dividend as projected and has misrepresented its true profitability metrics.

Allegations of Misrepresentation

According to the lawsuit, CTO Realty made false and misleading statements regarding its dividend sustainability, overall profitability, and business prospects. More specifically, it is alleged that the company engaged in deceptive practices that inflated the perceived performance of its Ashford Lane property and its Adjusted Funds from Operations (AFFO). In doing so, CTO Realty misled investors about its operational health, which ultimately led to significant market disillusionment when the truth came to light.

Investor Participation and Actions

The Schall Law Firm encourages all investors affected by CTO's actions to consider joining the class action. Investors who have suffered financial losses during the class period are especially urged to participate in the lawsuit to potentially recover their losses. Brian Schall, an attorney representing the firm, is currently available to discuss the rights of shareholders free of charge. Interested parties can reach out directly through the firm’s website or contact the office for more information.

Importance of Class Action Lawsuit

Class action lawsuits like the one initiated by the Schall Law Firm play a critical role in ensuring accountability in public companies. They provide a forum for investors to be heard collectively, often leading to significant settlements or judicial rulings that benefit the shareholder community at large. The fact that the class has not yet been certified means active participation is especially important at this stage for legal representation.

Conclusion

As news of CTO Realty Growth's potential misconduct circulates, affected investors have a pivotal decision to make. Joining this class action lawsuit not only offers a chance for possible restitution but also sends a powerful message to corporations about the importance of transparency. Investors should act swiftly, as the deadline for participation in this class action is approaching on October 7, 2025. Those who wish to protect their investments and seek remediation from potential securities fraud are encouraged to contact the Schall Law Firm to discuss their options today.