Faruqi & Faruqi investigates CTO Realty Growth securities class action.

Faruqi & Faruqi, a securities law firm, is investigating potential claims against CTO Realty Growth, Inc. The firm encourages investors who suffered losses in CTO between February 18, 2021 and June 24, 2025 to contact James (Josh) Wilson directly. A federal securities class action has been filed against the Company, with a deadline to seek lead plaintiff role on October 7, 2025.

NEW YORK, Aug. 27, 2025 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against CTO Realty Growth, Inc. (NYSE: CTO) on behalf of investors who suffered losses due to alleged false and misleading statements. The firm encourages investors who purchased or acquired CTO securities between February 18, 2021, and June 24, 2025, to contact James (Josh) Wilson directly to discuss their legal rights.

The investigation follows a federal securities class action lawsuit filed in the United States District Court for the Middle District of Florida. The complaint alleges that CTO and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that:

1. CTO's dividends were less sustainable than represented.
2. The Company used deceptive and unsustainable practices to artificially inflate its Adjusted Funds From Operations (AFFO) and overstate the true profitability of its Ashford Lane property.
3. CTO's business and/or financial prospects were overstated.

The complaint also alleges that CTO relied on dilution to cover a $38 million dividend shortfall from 2021 to 2024 and employed a manipulative AFFO definition by excluding recurring capital expenditures, unlike its peers. Additionally, the firm is accused of using a "sham loan" to conceal the collapse of a major tenant at Ashford Lane.

Investors have until October 7, 2025, to seek appointment as lead plaintiff in the case. The court-appointed lead plaintiff will direct and oversee the litigation on behalf of the putative class. Any member of the putative class may move the court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.

Faruqi & Faruqi, LLP encourages anyone with information regarding CTO's conduct to contact the firm, including whistleblowers, former employees, shareholders, and others.

References:
[1] https://www.marketscreener.com/news/shareholders-who-lost-money-in-shares-of-cto-realty-growth-inc-nyse-cto-should-contact-wolf-hal-ce7c51d3df8af427
[2] https://www.morningstar.com/news/pr-newswire/20250821ny54899/shareholder-action-reminder-faruqi-faruqi-llp-investigates-claims-on-behalf-of-investors-of-cto-realty-growth
[3] https://www.morningstar.com/news/pr-newswire/20250827ny59547/investor-deadline-approaching-faruqi-faruqi-llp-investigates-claims-on-behalf-of-investors-of-cto-realty-growth