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Faruqi & Faruqi, LLP Investigates Potential Claims for CTO Realty Growth Investors

As the October 7, 2025 deadline approaches, Faruqi & Faruqi, LLP, a prominent national securities law firm, has stepped forward to investigate potential claims on behalf of investors in CTO Realty Growth, Inc. (NYSE: CTO). The law firm is urging affected investors to consider their legal options regarding alleged misconduct by the company.

Understanding the Situation

Recent reports indicate that CTO Realty Growth has come under scrutiny, with allegations surfacing that the company, alongside its executives, may have violated federal securities laws. Specifically, claims have arisen suggesting that the company's practices concerning dividend sustainability and financial reporting could mislead investors regarding its actual profitability and overall financial health. According to the complaints, CTO's executives face accusations of making false statements and failing to disclose crucial information that would affect investor decisions.

Allegations Against CTO Realty Growth

An investigative report published by Wolfpack Research has raised significant concerns regarding CTO's financial practices. The report highlights that CTO has been unable to generate sufficient cash to cover its recurring costs and dividends, leading to severe financial distress. It notes that since converting to a Real Estate Investment Trust (REIT) in 2021, the company has increasingly relied on dilution—substantially increasing the number of outstanding shares—to bridge substantial shortfalls in dividend payments. Moreover, the report claims that CTO used manipulative accounting practices that misrepresented its assets' performance.

Specifically, the report cited that CTO utilized a questionable definition of Funds from Operations (AFFO), excluding recurring capital expenditures that are normally considered in industry-standard evaluations. These deceptive practices have contributed to an exaggerated portrayal of the company's financial condition, which may have induced investors to maintain their investments based on misleading information.

Investor Action and Deadlines

The law firm’s partner, Josh Wilson, noted that investors who purchased or acquired shares in CTO between February 18, 2021, and June 24, 2025, may have rights to seek financial recovery, particularly given the chief legal deadline approaching in early October. Investors can reach out directly to discuss their situation and explore possible legal recourse. It’s crucial for affected parties to act promptly, as participation as a lead plaintiff in potential class action entails a distinct channel for pursuing recovery rights.

Moreover, the report from Wolfpack has reportedly impacted CTO's stock prices, illustrating market reactions to the emerging legal troubles. Following the report's publication on June 25, 2025, CTO's stock experienced a notable decline, indicating a loss of investor confidence and further spotlighting the necessity for transparency surrounding its operations.

Next Steps for Investors

Faruqi & Faruqi, LLP emphasizes the importance of investor vigilance and urges anyone with pertinent information regarding CTO's actions—whether whistleblowers, former employees, or shareholders—to come forward. The firm aims to gather as much insight as possible to substantiate claims against the company effectively. Such collaboration can empower investors to reclaim lost funds resulting from the alleged misleading statements and practices.

If you're an investor in CTO Realty Growth and believe you may have suffered financial losses, it’s imperative to reach out to Faruqi & Faruqi directly via their contacts. Their experienced legal team is devoted to advocating for the rights of investors and ensuring that due process is served within the complex realm of securities litigation.

Lastly, maintain awareness of ongoing developments by following updates from Faruqi & Faruqi through their LinkedIn and other social media channels. The firm remains committed to supporting investors as they navigate this crucial period. The firm has a proven track record of recovering significant funds for investors since its establishment in 1995—an asset as affected parties look towards obtaining justice in the face of potential financial loss.

For further information about this investigation and to contact the firm, you can visit their website or call directly for assistance.