#USA #New York #Faruqi & Faruqi #Wolfpack Research #CTO Realty Growth

Shareholder Alert: Investigation of CTO Realty Growth, Inc.

Faruqi & Faruqi, LLP, a prominent national law firm specializing in securities litigation, is currently investigating possible claims involving CTO Realty Growth, Inc. (NYSE: CTO). Investors who have incurred losses exceeding $75,000 from February 18, 2021, to June 24, 2025, are being urged to reach out for an evaluation of their legal options. This investigation comes on the heels of a report highlighting potential misrepresentations by the company.

Details of the Investigation

James (Josh) Wilson, a senior partner at Faruqi & Faruqi, has made himself accessible for conversations with affected investors. He emphasizes the importance of contacting the firm before the October 7, 2025, deadline for those wishing to assume the role of lead plaintiff in a federal securities class action filed against CTO Realty.

The investigation surrounds allegations that CTO Realty and its leadership breached federal securities regulations by providing misleading information and failing to disclose vital financial details. Specifically, claims have emerged suggesting that CTO's dividend distributions were less reliable than previously advertised. Additionally, accusations assert that the company utilized dubious and unsustainable methods to artificially inflate its Adjusted Funds From Operations (AFFO) metrics, leading to an overstated view of its profitability, particularly related to its Ashford Lane property.

The Impact of Wolfpack Research's Findings

On June 25, 2025, a report by Wolfpack Research surfaced, likening CTO to B. Riley—a financial entity that has seen a steep decline of over 90% in value following a series of significant losses and a delay in financial disclosures. The Wolfpack Report included troubling allegations, indicating that since transitioning to a Real Estate Investment Trust in 2021, CTO has struggled to generate sufficient cash to meet its ongoing capital expenditures and dividend obligations. The firm reportedly leaned on share dilution to address a $38 million dividend shortfall between 2021 and 2024.

The scrutiny isn't limited to just market performance; the report asserted that CTO's management provided a misleading definition of AFFO by excluding necessary capital expenses—contrasting with definitions established by its industry peers.

This scrutiny further escalated as the investigation noted that CTO reported only $8.4 million in cash reserves while facing $14 million in quarterly dividends and additional capital expenses. The revelations prompted a noteworthy dip in the company's stock price, plummeting by $0.98, or approximately 5.42%, closing at $17.10 per share on the day of the report's release.

Taking Legal Action: What Investors Should Do

The legal action allows affected investors to seek reparations through class action suits. A lead plaintiff will be appointed from investors demonstrating adequate financial interest and typicality regarding the other class members. Interested parties can either apply to serve as lead plaintiff through their counsel or maintain their status as absent class members without jeopardizing potential recovery from the case.

Furthermore, Faruqi & Faruqi encourages all individuals with insights into CTO's practices—including whistleblowers, former employees, and shareholders—to reach out and share their experiences. This testimony can significantly bolster the investigation and the class action’s case.

For more information related to the class actions against CTO Realty Growth, individuals can visit the firm's official website or contact partner Josh Wilson directly. This investigation illustrates the critical elements of stockholder rights in the face of potential corporate misconduct. As the deadline for lead plaintiff positions approaches, affected investors are urged to act swiftly to protect their interests in these legal proceedings.

Conclusion

Faruqi & Faruqi, LLP has prided itself on recovering substantial amounts for investors since its founding in 1995 and continues to welcome conversations around this troubling report on CTO Realty Growth. The firm's commitment to shareholder advocacy is steadfast as they navigate the complexities surrounding this investigation.