CTO Realty Growth faces class action for alleged misleading investors about financial prospects.

Robbins LLP is investigating allegations that CTO Realty Growth, Inc. misled investors about its financial prospects. The complaint alleges that the company failed to disclose that its dividends were less sustainable than reported and used deceptive practices to artificially inflate its adjusted funds from operations. The class action seeks to represent all investors who purchased CTO securities between February 18, 2021 and June 24, 2025.

SAN DIEGO, Aug. 11, 2025 /PRNewswire/ — Robbins LLP has informed investors that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired CTO Realty Growth, Inc. (NYSE: CTO) securities between February 18, 2021 and June 24, 2025. The lawsuit alleges that the company misled investors about its financial prospects and used deceptive practices to inflate its financial statements.

According to the complaint, CTO Realty Growth, Inc. failed to disclose that its dividends were less sustainable than represented and employed unsustainable practices to artificially inflate its Adjusted Funds from Operations (AFFO). The complaint further alleges that the company used a sham loan to hide the collapse of a top tenant at its Ashford Lane property.

On June 25, 2025, Wolfpack Research published a report entitled "CTO: The B. Riley of REITs," which accused CTO of various financial misdeeds. The report noted that CTO has just $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million per quarter. This revelation led to a significant drop in CTO's stock price by over 5%.

Investors who purchased CTO securities during the specified period may be eligible to participate in the class action. The lead plaintiff for the class must submit their papers with the court by October 7, 2025. Robbins LLP is a recognized leader in shareholder rights litigation and offers representation on a contingency fee basis, meaning shareholders pay no fees or expenses.

For more information, interested parties can contact attorney Aaron Dumas, Jr. at (800) 350-6003 or visit the Robbins LLP website.

References:
[1] https://www.marketscreener.com/news/investor-alert-robbins-llp-informs-investors-of-the-cto-realty-growth-inc-class-action-lawsuit-ce7c5ed2da8bf422