Pomerantz Law Firm Launches Class Action Against CTO Realty Growth, Inc. and Its Executives
In a significant move, the Pomerantz Law Firm has officially announced the initiation of a class action lawsuit against CTO Realty Growth, Inc. and certain officers of the company. This litigation, which underscores the firm’s commitment to advocate for investors' rights, was filed in the United States District Court for the Middle District of Florida and is documented under the case number 25-cv-01516. The suit represents a class of individuals and entities that acquired CTO securities from February 18, 2021, to June 24, 2025, a period that the plaintiffs claim is marked by substantial financial discrepancies and misleading statements by the company’s executives.
The class action seeks recovery for damages purportedly inflicted by the defendants’ violations of federal securities laws, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, along with the related Rule 10b-5. Investors who purchased CTO securities within this designated time frame are urged to move quickly, as they must submit requests for lead plaintiff status to the court by the deadline of October 7, 2025. Interested parties can access the official complaint through Pomerantz’s website or communicate directly with Danielle Peyton via email or phone for more information.
CTO Realty Growth, known under the ticker symbol CTO on the NYSE, operates as a publicly-traded real estate investment trust (REIT). Established in its current form in February 2021, the company manages a portfolio of retail-based properties, primarily targeting markets characterized by high growth potential across seven U.S. states. By the close of 2024, CTO had amassed 23 income-generating properties, which include notable assets such as Ashford Lane, a thriving retail and dining hub situated in Atlanta, Georgia.
REITs like CTO benefit from significant tax advantages, as they are mandated by the SEC to distribute a minimum of 90% of taxable earnings to shareholders in the form of dividends. This operational strategy, while promoting attractive returns for investors, also invokes stringent regulatory scrutiny regarding their financial disclosures and overall business practices. The company’s management has consistently claimed that its REIT structure is designed to maximize tax efficiency and foster sustainable dividend yields for shareholders.
To gauge its financial health, CTO employs a measurement known as Adjusted Funds from Operations (AFFO), which, though varied in calculation methods, aims to provide a clearer view of the REIT’s cash flow by accounting for regular capital expenditures necessary for maintaining properties within its portfolio. Analysts favor this metric as it usually presents a reliable estimation for current valuations and future dividend capabilities.
However, the class action lawsuit hinges on allegations that CTO and its executives disseminated materially misleading or false information regarding various aspects of the company’s operations and compliance policies during the Class Period. Specifically, the lawsuit contends that the defendants did not adequately disclose the sustainability challenges of CTO's dividends, resorted to misleading practices that artificially inflated AFFO figures, and overstated the financial viability of key properties under their management, including Ashford Lane.
On June 25, 2025, a pivotal report released by Wolfpack Research brought to light critical insights and comparisons that have profoundly impacted CTO's share value. The report likened CTO to B. Riley, a financial services firm that has suffered a harrowing drop in stock price due to systemic financial difficulties and scrutiny. According to the findings presented, CTO has been struggling to generate necessary cash flow to meet recurring capital expenditures and cover dividend payments since its transition to a REIT model. Wolfpack highlighted the company’s practices of share dilution to compensate for its financial shortcomings, indicating a 70% increase in shares outstanding for such efforts between late 2022 and the end of 2024. Furthermore, discrepancies in reporting practices regarding AFFO were called out, where CTO excluded significant capital expenditures that are typically accounted for by its peers.
This revelation correlated with a significant decline in CTO's stock price, reflecting investor concerns over the sustainability of its financial practices. On the same day that the Wolfpack report was released, CTO shares dropped by $0.98, marking a 5.42% decrease to close at $17.10 per share.
As a firm with a long-standing reputation in corporate, securities, and antitrust class actions, Pomerantz LLP has historically worked to recover substantial damages on behalf of investors. Since its inception by Abraham L. Pomerantz—widely recognized as a pioneer in securities class actions—the firm has maintained a legacy of holding corporations accountable for wrongdoing and ensuring justice for impacted investors. Pomerantz’s commitment to this mission continues today, as demonstrated by their rigorous approach in addressing the grievances raised by CTO investors. For more information about this lawsuit and joining the class action, investors can visit Pomerantz's official website or contact the firm directly for guidance.
In summary, the unfolding situation at CTO Realty Growth, Inc. illustrates the unpredictable nature of investments within the REIT sector while reminding investors of the critical importance of due diligence and scrutiny over corporate practices. The Pomerantz class action marks a pivotal opportunity for investors to seek restitution against purported corporate malfeasance.
The class action seeks recovery for damages purportedly inflicted by the defendants’ violations of federal securities laws, specifically under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, along with the related Rule 10b-5. Investors who purchased CTO securities within this designated time frame are urged to move quickly, as they must submit requests for lead plaintiff status to the court by the deadline of October 7, 2025. Interested parties can access the official complaint through Pomerantz’s website or communicate directly with Danielle Peyton via email or phone for more information.
CTO Realty Growth, known under the ticker symbol CTO on the NYSE, operates as a publicly-traded real estate investment trust (REIT). Established in its current form in February 2021, the company manages a portfolio of retail-based properties, primarily targeting markets characterized by high growth potential across seven U.S. states. By the close of 2024, CTO had amassed 23 income-generating properties, which include notable assets such as Ashford Lane, a thriving retail and dining hub situated in Atlanta, Georgia.
REITs like CTO benefit from significant tax advantages, as they are mandated by the SEC to distribute a minimum of 90% of taxable earnings to shareholders in the form of dividends. This operational strategy, while promoting attractive returns for investors, also invokes stringent regulatory scrutiny regarding their financial disclosures and overall business practices. The company’s management has consistently claimed that its REIT structure is designed to maximize tax efficiency and foster sustainable dividend yields for shareholders.
To gauge its financial health, CTO employs a measurement known as Adjusted Funds from Operations (AFFO), which, though varied in calculation methods, aims to provide a clearer view of the REIT’s cash flow by accounting for regular capital expenditures necessary for maintaining properties within its portfolio. Analysts favor this metric as it usually presents a reliable estimation for current valuations and future dividend capabilities.
However, the class action lawsuit hinges on allegations that CTO and its executives disseminated materially misleading or false information regarding various aspects of the company’s operations and compliance policies during the Class Period. Specifically, the lawsuit contends that the defendants did not adequately disclose the sustainability challenges of CTO's dividends, resorted to misleading practices that artificially inflated AFFO figures, and overstated the financial viability of key properties under their management, including Ashford Lane.
On June 25, 2025, a pivotal report released by Wolfpack Research brought to light critical insights and comparisons that have profoundly impacted CTO's share value. The report likened CTO to B. Riley, a financial services firm that has suffered a harrowing drop in stock price due to systemic financial difficulties and scrutiny. According to the findings presented, CTO has been struggling to generate necessary cash flow to meet recurring capital expenditures and cover dividend payments since its transition to a REIT model. Wolfpack highlighted the company’s practices of share dilution to compensate for its financial shortcomings, indicating a 70% increase in shares outstanding for such efforts between late 2022 and the end of 2024. Furthermore, discrepancies in reporting practices regarding AFFO were called out, where CTO excluded significant capital expenditures that are typically accounted for by its peers.
This revelation correlated with a significant decline in CTO's stock price, reflecting investor concerns over the sustainability of its financial practices. On the same day that the Wolfpack report was released, CTO shares dropped by $0.98, marking a 5.42% decrease to close at $17.10 per share.
As a firm with a long-standing reputation in corporate, securities, and antitrust class actions, Pomerantz LLP has historically worked to recover substantial damages on behalf of investors. Since its inception by Abraham L. Pomerantz—widely recognized as a pioneer in securities class actions—the firm has maintained a legacy of holding corporations accountable for wrongdoing and ensuring justice for impacted investors. Pomerantz’s commitment to this mission continues today, as demonstrated by their rigorous approach in addressing the grievances raised by CTO investors. For more information about this lawsuit and joining the class action, investors can visit Pomerantz's official website or contact the firm directly for guidance.
In summary, the unfolding situation at CTO Realty Growth, Inc. illustrates the unpredictable nature of investments within the REIT sector while reminding investors of the critical importance of due diligence and scrutiny over corporate practices. The Pomerantz class action marks a pivotal opportunity for investors to seek restitution against purported corporate malfeasance.
Topics Financial Services & Investing）
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