#United States #San Diego #Class Action #Robbins LLP #CTO Realty

Investor Alert: Robbins LLP Files Class Action Against CTO Realty Growth, Inc.

Overview

Robbins LLP, a law firm specializing in shareholder rights, has recently announced the initiation of a class action lawsuit on behalf of investors in CTO Realty Growth, Inc. (NYSE: CTO). This lawsuit is aimed at those who purchased or acquired CTO securities between February 18, 2021, and June 24, 2025. The company operates as a real estate investment trust (REIT), primarily focusing on high-quality retail properties situated in high-growth regions across the United States.

Allegations Against CTO Realty Growth

The core allegations against CTO involve claims that the company misrepresented its financial health and the sustainability of its dividends. According to the complaint, the defendants failed to disclose critical information that impacted investors' decisions significantly:

1. Unsustainable Dividends: It is alleged that CTO's dividend payments were not as sustainable as portrayed. Investors were led to believe in the reliability of these dividends, which later came into question.
2. Deceptive Financial Practices: The lawsuit claims that CTO engaged in questionable practices to artificially enhance its Adjusted Funds from Operations (AFFO), falsely inflating its profitability. This concerned specific properties, particularly the Ashford Lane property.
3. Overstated Prospects: Consequently, CTO's business and financial outlook may have been grossly overstated, leading to misguided investor confidence.

The allegations gained momentum following a damaging report published by Wolfpack Research on June 25, 2025. The report titled "CTO: The B. Riley of REITs" outlined multiple issues, including the following:

• - CTO purportedly failed to generate sufficient cash to meet recurring capital expenditures and dividends since its transition to a REIT in 2021, relying instead on share dilution to cover shortfalls.
• - The report noted a striking 70% increase in shares since December 2022 to offset a $38 million dividend deficiency recorded from 2021 to 2024.
• - It criticized the company's manipulation of AFFO calculations by excluding recurring capital expenditures, which diverged from practices followed by similar REITs.
• - Finally, it pointed out that CTO owned a mere $8.4 million in cash while being obliged to cover $14 million in quarterly dividends and facing ongoing capital expenditure demands.

In light of these revelations, the stock price for CTO plummeted by more than 5% on the day the report was made public.

Next Steps for Investors

Investors affected by these practices are encouraged to take action. To be included in the class action lawsuit, shareholders intending to serve as lead plaintiffs must file their papers with the court by October 7, 2025. The lead plaintiff acts on behalf of other class participants in directing the case's proceedings. However, participation in the case is not a prerequisite for financial recovery; absent class members retain their rights to compensation even without active involvement.

Robbins LLP operates on a contingency fee basis, meaning that shareholders will incur no costs unless they recover losses through the litigation.

About Robbins LLP

Robbins LLP, a recognized leader in shareholder rights litigation, has committed itself to assisting shareholders in reclaiming losses, bolstering corporate governance, and ensuring accountability among company executives engaged in malpractice since its inception in 2002. Interested parties can stay informed about class actions and corporate misconduct by signing up for the firm’s Stock Watch service.

For additional inquiries or information regarding the CTO Realty Growth, Inc. class action lawsuit, members are urged to contact attorney Aaron Dumas, Jr. or call Robbins LLP directly at (800) 350-6003.