CTO Realty Growth Investors Can Take Action in Securities Fraud Lawsuit
In a recent announcement made by Glancy Prongay & Murray LLP, investors who have incurred losses from their investments in CTO Realty Growth, Inc. have been given the opportunity to participate in a securities fraud class action lawsuit against the company. This legal action arises from claims that the company's executives misled shareholders regarding the sustainability of dividends and the overall financial health of the firm.
The lawsuit references several critical allegations. Firstly, it asserts that between February 18, 2021, and June 24, 2025, executive leadership failed to inform investors adequately about the true stability of CTO's dividends. The misleading information suggested that those dividends were more reliable than they actually were. This, in turn, may have led many investors to make financial decisions based on an inaccurate understanding of the company's performance.
Moreover, the complaint alleges that CTO used deceptive practices to artificially inflate its Adjusted Funds from Operations (AFFO), contributing to an overstatement of profitability concerning one of its properties, Ashford Lane. By doing so, CTO executives could project a healthier company trajectory while masking underlying financial concerns from shareholders. The lawsuit claims that these inflated representations created a positive narrative about CTO's business and financial prospects, which ultimately misled the investment community.
With the deadline for lead plaintiffs approaching on October 7, 2025, affected investors are encouraged to step forward and consider their rights. Those who believe they may qualify can initiate participation by contacting Glancy Prongay & Murray LLP for further information.
For investors wishing to engage in this class-action lawsuit, no immediate action is required; they may still consult with legal counsel of their choosing or choose to remain passive members of the civil action. The firm managing the lawsuit will ensure that all necessary actions are taken to advocate on behalf of shareholders.
As highlighted in the law firm's communication, individuals interested in joining this lawsuit or who have questions about their situation can reach out to attorney Charles Linehan directly. Prospective participants should provide details such as their mailing address, telephone number, and the amount of shares purchased when inquiring about the lawsuit.
This case underscores the importance of transparency and honesty in corporate disclosures and illustrates the potential risks investors face when executives prioritize short-term gains over accurate reporting. Investors should always approach investments with caution, especially when company practices may indicate a disconnect between reported performance and reality. The upcoming class-action lawsuit represents a significant opportunity for investors to seek redress for losses incurred due to alleged misleading practices by CTO Realty Growth executives.
As the situation unfolds and details emerge, investors remain vigilant, realizing the significance of this lawsuit in holding corporations accountable for their fiduciary duties. By participating in this class action, shareholders can unite their voices to create a stronger case against the alleged fraud at CTO Realty Growth and not only seek financial restitution but also promote more stringent regulations on corporate accountability and transparency in the investing landscape.