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

Legal Action for CTO Realty Growth Investors

As of September 24, 2025, Robbins LLP has officially announced the filing of a class action suit on behalf of stockholders of CTO Realty Growth, Inc. (NYSE: CTO). This action is particularly relevant for those who purchased CTO securities between February 18, 2021, and June 24, 2025, and it signifies a critical stance against allegations of misleading financial practices by the real estate investment trust (REIT).

Understanding the Class Action

The essence of this class action lies in the serious allegations made against CTO Realty Growth, a company that claims to operate high-quality retail-based properties situated in the most lucrative U.S. markets. According to the filed complaint, the company has reportedly failed to disclose material information that could potentially jeopardize the financial interests of its investors. The key allegations include:

1. Unsustainable Dividends: The complaint asserts that CTO’s dividends are far less sustainable than the company previously indicated to its shareholders, thus raising serious concerns about the financial stability of the investments.
2. Deceptive Financial Practices: An investigation led by Robbins LLP highlights that CTO allegedly employed misleading and unsustainable practices to create a false impression of profitability regarding its operations, particularly at the Ashford Lane property.
3. Misrepresentation of Financial Prospects: The accusations further extend to overstating CTO's overall business and financial outlook, potentially misleading investors regarding the true performance of the company.

Specific Allegations from Wolfpack Research

On June 25, 2025, a critical report from Wolfpack Research became public, titled 'CTO The B. Riley of REITs'. This report accused CTO Realty Growth of failing to generate adequate cash flow to support its operational expenses, including dividend payouts. Key points from the report include:

• - CTO had not produced enough cash to meet its recurring capital expenditures and dividends since its inception as a REIT in 2021.
• - The company reportedly relied on share dilution (increasing shares outstanding by 70% since December 2022) to offset a staggering $38 million dividend shortfall from 2021 to 2024.
• - CTO allegedly manipulated the calculations for its Adjusted Funds from Operations (AFFO), excluding recurring capex, unlike its competitor peers which seek transparency and accountability.
• - The company is said to have executed a dubious loan scheme to mask the financial distress of a major tenant at Ashford Lane, a move that appears to obscure the financial reality from shareholders.

Following the release of this report, CTO's stock price plummeted more than 5%, prompting significant concern among stockholders about their investments.

What Can Investors Do?

Stockholders adversely affected by the decline in CTO Realty Growth's stock value should take immediate action. According to Robbins LLP, those who wish to be recognized as lead plaintiffs in this class action lawsuit must file their claims by October 7, 2025. A lead plaintiff serves as a representative for all class members, guiding the direction of the lawsuit. However, it is important to note that investors can still benefit from a settlement without formally participating in the case as an active member.

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

About Robbins LLP

Founded in 2002, Robbins LLP has built a reputation as a leader in shareholder rights litigation. Their commitment lies in helping shareholders recover their losses, improve corporate governance, and ensure that company executives are held accountable for any violations of fiduciary duty and misconduct.

For updates on the progress of the class action or to receive alerts related to corporate wrongdoing, stockholders can sign up for 'Stock Watch' through Robbins LLP's platform.

In conclusion, CTO Realty Growth stockholders are urged to closely monitor developments in this case and consider participating in the class action to protect their investment interests and seek compensation for any losses incurred during the alleged misconduct period.