Berger Montague Investigates Class Action Against CTO Realty Growth for Securities Violations

Berger Montague PC Investigates CTO Realty Growth

Philadelphia, August 15, 2025 - Berger Montague PC has initiated an investigation into the alleged mismanagement and securities violations concerning CTO Realty Growth, Inc. (NYSE: CTO), a real estate investment trust based in Winter Park, Florida. This legal action follows claims that the company misled investors about its financial health, particularly during the period from February 18, 2021, through June 24, 2025.

CTO Realty Growth has recently come under scrutiny after accusations that it manipulated essential financial metrics, consequently overstating the profitability of several properties in its portfolio. The lawsuit draws significant attention to the Ashford Lane property in Atlanta, which has been cited for questionable accounting practices.

In a recent report, Wolfpack Research, a well-known short-seller, alleged that CTO Realty Growth concealed a financial shortfall of $38 million. It's claimed that the company significantly diluted its shareholder base—by an astonishing 70%—to cover this gap. Furthermore, the use of a so-called “sham loan” was highlighted as a tactic to mask financial troubles related to a tenant at its Ashford Lane location.

The revelations have had a tangible impact on CTO’s market performance; following the reports, the stock price experienced a noticeable decline, dropping by 5.42% on June 25, 2025, to $17.10 per share. Investors looking to seek justice can become lead plaintiffs in this class-action suit if they came into ownership of CTO stock within the specified timeframe.

Berger Montague emphasizes that investors who feel they were adversely affected by CTO's actions have until October 7, 2025, to step forward. The law firm encourages anyone interested in learning more about their rights or how to participate in the action to reach out to them directly.

The firm has been at the forefront of securities class-action litigation since its inception in 1970 and has earned a reputation for representing both individual and institutional investors. Its commitment to securing justice for clients has been a hallmark of its operations across multiple cities including Philadelphia, Minneapolis, and San Diego.

Those affected are urged to contact Andrew Abramowitz, Senior Counsel at Berger Montague, via phone at (215) 875-3015 or by email for further information. Caitlin Adorni is also available for inquiries at (267) 764-4865.

For those seeking transparency and accountability in corporate practices, this case emphasizes the need for vigilance among investors and the critical role law firms play in advocating for their rights. Berger Montague continues its dedicated work in this arena, ensuring that stakeholders involved in this potential class action are not left without recourse.

In conclusion, investors of CTO Realty Growth should not overlook the ramifications that may arise from these serious allegations. The ongoing investigation emphasizes the significance of holding companies accountable for their statements and actions, reinforcing the overall integrity of the financial markets.