Investors Urged to Join Class Action Against CTO Realty Growth, Inc. for Securities Fraud

Class Action Lawsuit Against CTO Realty Growth, Inc.

In a significant development for investors of CTO Realty Growth, Inc. (NYSE: CTO), the law firm Berger Montague has announced the initiation of a class action lawsuit. This follows allegations of securities fraud that could have serious implications for stakeholders involved with the company.

Background of CTO Realty Growth, Inc.

CTO Realty Growth, based in Winter Park, Florida, operates as a real estate investment trust (REIT). The company has been on the radar for many investors due to its performance and dividend sustainability. However, recent reports have raised questions about the accuracy of its financial disclosures and practices, resulting in this legal action.

The class action lawsuit is directed at individuals who acquired securities of CTO between February 18, 2021, and June 24, 2025, also referred to as the class period. Investors have until October 7, 2025, to express their interest in joining the lawsuit as lead plaintiffs or representatives of the class. This timeframe is crucial for potential claimants, as it will determine their ability to seek restitution.

Allegations Detailed in the Complaint

According to the legal complaint, CTO Realty Growth has been accused of making misleading statements regarding the viability of its dividend structure, the actual profitability of its Ashford Lane property, and the overall health of its business operations. A recent report published by Wolfpack Research alleged that the company has not generated sufficient cash to fund its recurring capital expenditures or dividends since 2021. Instead, CTO reportedly relied on issuing new shares, which has diluted existing shareholders by approximately 70% since December 2022. Moreover, the report accuses CTO of manipulating its Adjusted Funds From Operations (AFFO) metric, drawing serious concerns from investors.

On June 25, 2025, after these findings were made public, CTO’s stock plummeted by 5.42%, closing at $17.10 per share. Investors are clearly troubled by the financial nuances and the implications of these revelations, which may erode investor confidence further.

Next Steps for Investors

For those interested in finding out more about their options under this class action or seeking to learn their legal rights, Berger Montague is actively encouraging investors to reach out for more information. Interested parties can contact Andrew Abramowitz or Caitlin Adorni at the provided contact information to discuss the specifics of the case and their individual circumstances.

About Berger Montague

Established in 1970, Berger Montague has a rich history as a leading firm in securities class action litigation. Headquartered in Philadelphia, with additional offices across key U.S. cities and in Canada, the firm has decades of experience in representing both individual and institutional investors in courts nationwide. Their commitment to pursuing justice for clients is reflected in their extensive participation in important legal matters such as this one.

This class action lawsuit against CTO Realty Growth, Inc. underscores the importance of transparency and accountability in corporate governance, especially for investors relying on accurate disclosures. Stakeholders are encouraged to stay informed and take action during this critical juncture to protect their interests and ensure justice is served.