Investor Alert: Berger Montague Investigates Potential Securities Fraud Class Action Against CTO Realty Growth, Inc.

Berger Montague PC, a well-established law firm known for its involvement in securities litigation, is launching an investigation into potential class action claims against CTO Realty Growth, Inc. (NYSE: CTO). The firm is focusing on allegations arising from violations of federal securities laws, particularly concerning the company’s financial disclosures and the overall condition of its investment practices. Founded in 1970, Berger Montague has been at the forefront of protecting the rights of individual and institutional investors.

Overview of the Allegations


Based in Winter Park, Florida, CTO Realty Growth operates as a real estate investment trust (REIT). According to the reports, the company is accused of deceiving its investors by manipulating critical financial metrics. A significant part of the case hinges on claims that CTO overstated the profitability of multiple properties, including the Ashford Lane community located in Atlanta. In particular, investors had been led to believe that the financial standing of the company was steady, which is now under scrutiny due to potential misconduct.

Recent Developments


The situation escalated on June 25, 2025, when Wolfpack Research, a notable short-seller, published a report accusing CTO of financially engineering its way out of a challenging situation. The report highlighted a shocking $38 million dividend shortfall that was covered by excessively diluting shareholders. Specifically, they expanded the company's outstanding share count by an alarming 70%. Furthermore, the report alleged that CTO had engaged in what they termed a 'sham loan' to mask the collapse of its tenant at Ashford Lane. This revelation caused a immediate negative reaction in the market, resulting in a notable 5.42% decline in CTO’s stock price, which ended the trading day at $17.10 per share.

Call to Action for Investors


Investors who acquired CTO securities between February 18, 2021, and June 24, 2025, are encouraged to consider their rights and options. The deadline to apply for appointment as a lead plaintiff in this potential class action lawsuit is October 7, 2025. Berger Montague is providing resources for those interested in learning more about this situation and the investigation into CTO Realty Growth, as well as the potential implications for shareholders.

Contact Information


Interested investors are urged to contact Berger Montague representatives directly to discuss their rights. Andrew Abramowitz and Caitlin Adorni are the designated points of contact for inquiries related to this investigation.

About Berger Montague


With a proud history of representing investors across various lawsuits, Berger Montague is adept in navigating the complex landscape of securities regulations. Their offices span several major cities, including Philadelphia, Chicago, and San Francisco, making them well-equipped to handle large-scale class action litigations. If you believe you have been adversely affected by the actions of CTO Realty Growth, you are encouraged to reach out as soon as possible for further guidance.

Conclusion


The unfolding situation surrounding CTO Realty Growth highlights the critical importance of transparency in financial disclosures. Investors must remain vigilant about the companies they choose to support, and legal avenues must be explored when allegations of fraud come into light. Berger Montague remains committed to uncovering the truth and ensuring that investors' rights are defended in the face of corporate misconduct.

Topics Financial Services & Investing)

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