Faruqi & Faruqi Investigating CTO Realty Growth Securities Class Action

Faruqi & Faruqi LLP is investigating potential claims against CTO Realty Growth, Inc. (NYSE: CTO) for alleged securities fraud. The firm is encouraging investors who purchased or acquired securities between February 18, 2021, and June 24, 2025, to contact them directly to discuss their options. The deadline to seek the role of lead plaintiff is October 7, 2025.

Faruqi & Faruqi, LLP, a leading national securities law firm, has announced its investigation into potential claims against CTO Realty Growth, Inc. (NYSE: CTO) for alleged securities fraud. The firm is encouraging investors who purchased or acquired securities between February 18, 2021, and June 24, 2025, to contact them directly to discuss their options. The deadline to seek the role of lead plaintiff in the federal securities class action is October 7, 2025 [2].

The investigation stems from a complaint alleging that CTO and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose material adverse facts about the company's business, operations, and prospects. Specifically, the complaint alleges that CTO's dividends were less sustainable than Defendants had led investors to believe, the company used deceptive and unsustainable practices to artificially inflate its Adjusted Funds From Operation (AFFO) and overstate the true profitability of its Ashford Lane property, and as a result, the company's business and financial prospects were overstated [1].

On June 25, 2025, Wolfpack Research published a report entitled "CTO: The B. Riley of REITs," which compared CTO unfavorably to B. Riley, a financial services company that recently lost more than 90% of its value. The report accused CTO of not generating enough cash to pay its recurring capital expenditures (capex) and cover its dividends since converting to a Real Estate Investment Trust (REIT) in 2021, and instead relying on dilution to cover a $38 million dividend shortfall from 2021 to 2024 [1].

As a result of these allegations, CTO's stock price fell $0.98 per share, or 5.42%, to close at $17.10 per share on June 25, 2025 [1].

Faruqi & Faruqi, LLP encourages investors with losses exceeding $75,000 to contact the firm directly to discuss their legal rights. Investors can reach partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310) [2].

References:
[1] https://www.morningstar.com/news/business-wire/20250814770851/law-offices-of-howard-g-smith-encourages-cto-realty-growth-inc-cto-investors-to-inquire-about-securities-fraud-class-action
[2] https://www.businesswire.com/news/home/20250811112125/en/DEADLINE-ALERT-Faruqi-Faruqi-LLP-Investigates-Claims-on-Behalf-of-Investors-of-CTO-Realty-Growth