Investors Take Action Against CTO Realty Growth, Inc. in Class Action Lawsuit

CTO Realty Growth, Inc. Class Action Lawsuit

In recent developments, the Rosen Law Firm, a leading global investor rights firm, has filed a class action lawsuit on behalf of stakeholders in CTO Realty Growth, Inc. The suit addresses serious allegations of securities fraud that occurred within a specified time frame from February 18, 2021, to June 24, 2025. This period, known as the Class Period, marks a crucial chapter in the company’s financial narrative, where investor confidence has been called into question.

Why This Lawsuit Matters

Investors who acquired securities of CTO Realty during the Class Period may now find themselves eligible for monetary compensation, with no upfront fees or costs incurred, thanks to a contingency fee system employed by the Rosen Law Firm. This arrangement offers a safety net for those concerned about the financial implications of participating in a legal battle.

Lead Plaintiff Opportunities

Joining the suit entails a proactive step where potential plaintiffs can serve as lead representatives by filing requests before the deadline of October 7, 2025. The role of a lead plaintiff is significant as they guide the direction of litigation, representing not just their own interests but also those of fellow class members.

The Allegations Against CTO Realty

According to the accusations set forth in the lawsuit, during the Class Period, CTO Realty's executives allegedly made false and misleading statements regarding several aspects of the company's financial health. Specifically:

1. Sustainability of Dividends: It is claimed that CTO Realty officials misrepresented the sustainability of their dividends, leading investors to believe their payouts were more secure than they were.

2. Deceptive Practices: The suit suggests that CTO Realty deployed misleading and unsustainable practices to boost its Adjusted Funds from Operations (AFFO). This artificial inflation led to an overestimation of profitability, particularly regarding the Ashford Lane property.

3. Overstated Business Prospects: As a direct consequence of the alleged misleading information, it is asserted that the company’s actual business and financial prospects were grossly exaggerated, resulting in substantial investor losses once the truth was revealed.

4. Material Misrepresentation: The lawsuit contends that CTO Realty's public announcements consistently contained materially false and misleading details throughout the Class Period, which ultimately detrimentally affected investors once accurate information came to light.

Taking Action

For those wishing to join the class action, detailed instructions are available via the Rosen Law Firm's website. Interested parties can submit a form or connect directly with attorneys like Phillip Kim, who can provide guidance during the process. It is crucial to note that no class has been certified yet; therefore, potential participants are encouraged to seek qualified legal counsel to navigate this complex situation effectively.

Why Choose the Rosen Law Firm?

The Rosen Law Firm has built a reputation for its commitment to investor rights, focusing particularly on securities class actions. With a history of high-stakes cases and a notable track record, the firm secured the largest class action settlement against a Chinese company at the time, demonstrating its capacity to represent clients successfully. For many years, it has been ranked among the top firms for securities class action settlements, achieving hundreds of millions in recoveries for investors.

If you'd like to keep updated on this ongoing case and related developments, follow the Rosen Law Firm on their social media platforms, including LinkedIn, Twitter, and Facebook. With transparency and a commitment to investor advocacy, they aim to ensure that justice is served for those adversely affected by corporate misconduct.

In summary, CTO Realty Growth, Inc. stands at a crossroads as investors rally to reclaim their losses through legal avenues. As this lawsuit proceeds, it highlights the essential nature of accountability in corporate governance, ultimately seeking to protect investors and uphold market integrity.