Robbins LLP Offers Assistance to CTO Realty Growth Stockholders Impacted by Class Action Filing
Support for CTO Realty Growth Investors
On August 20, 2025, Robbins LLP issued a reminder for stockholders of CTO Realty Growth, Inc. (NYSE: CTO) who may have experienced significant losses. A class action has been initiated on behalf of investors who acquired CTO securities between February 18, 2021, and June 24, 2025. As a public real estate investment trust (REIT), CTO Realty Growth focuses on managing a portfolio of retail properties located mostly in high-growth markets across the United States.
In recent developments, allegations have emerged that CTO Realty Growth may have misled its investors regarding its financial stability and future prospects. Robbins LLP is currently investigating these claims as the lawsuit progresses.
The Allegations: A Closer Look
According to the allegations, the management of CTO Realty Growth failed to disclose critical information during the class period. This information includes:
1. Uncertainty Surrounding Dividends: Contrary to what was reported, CTO's dividend payments are allegedly less sustainable than previously communicated to investors.
2. Deceptive Financial Practices: The company is accused of employing questionable practices to artificially enhance its Adjusted Funds from Operations (AFFO), ultimately inflating the perceived profitability of their Ashford Lane property.
3. Exaggerated Financial Prospects: The overstatement of CTO's business outlook leads to questions regarding its integrity and the reliability of its financial disclosures.
The situation deteriorated when Wolfpack Research released a comprehensive report on June 25, 2025, titled "CTO: The B. Riley of REITs." The report accused CTO Realty Growth of failing to generate sufficient cash to cover its recurring capital expenditures and dividends since its conversion to a REIT in 2021. Furthermore, the report stated that the company has increased its outstanding shares by 70% since December 2022 to manage a substantial dividend shortfall, revealing a manipulative approach to defining its AFFO metrics compared to its competitors.
Market Reaction
Upon the release of the report and its concerning findings, the market reacted swiftly, causing CTO’s stock to drop by over 5%. Investors instinctively shifted their positions amid fears surrounding the company's financial viability.
What This Means for Investors
As of now, CTO Realty Growth stockholders who wish to be active participants in this legal battle and act as lead plaintiffs must submit their documentation to the court by October 7, 2025. Acting as a lead plaintiff means representing the interests of all affected shareholders in the ongoing litigation. However, potential claimants can choose to remain passive class members and still be eligible for any financial recovery without participating in the case.
Robbins LLP operates on a contingency fee basis for this litigation. This means that no fees or expenses are charged to the shareholders unless they successfully recover their investments.
About Robbins LLP
Founded in 2002, Robbins LLP has established itself as a leader in shareholder rights litigation. With a mission to help shareholders reclaim losses and promote better corporate governance, Robbins LLP has relentlessly pursued accountability from corporate executives for any misconduct.
For those looking to stay informed about the class action or receive alerts related to corporate breaches, Robbins LLP encourages stockholders to sign up for their Stock Watch service.
If you believe you have experienced significant losses from your investment in CTO Realty Growth, don’t hesitate to reach out. The time to act is now, ensuring your voice is heard in this critical matter.