CTO Realty Growth Misled Investors Regarding Business Operations, Lawsuit Alleges

Rosen Law Firm is investigating allegations that CTO Realty Growth, Inc. misled investors about its business operations, including the sustainability of its dividends, use of deceptive practices to inflate AFFO, and overstated profitability. Investors who suffered damages may be eligible to participate in a class action lawsuit.

New York, July 2, 2025 — Rosen Law Firm, a global investor rights law firm, has announced the filing of a class action lawsuit against CTO Realty Growth, Inc. (NYSE: CTO, CTO-PA), a real estate investment trust (REIT). The lawsuit alleges that CTO Realty Growth misled investors regarding its business operations, including the sustainability of its dividends, the use of deceptive practices to inflate its Adjusted Funds from Operations (AFFO), and the overstated profitability of its Ashford Lane property.

The class action lawsuit, filed on behalf of purchasers and acquirers of CTO Realty Growth securities between February 18, 2021, and June 24, 2025, alleges that the company made false and misleading statements and/or failed to disclose that:

1. CTO's dividends were less sustainable than investors were led to believe.
2. CTO Realty Growth used deceptive and unsustainable practices to artificially inflate its AFFO and overstate the true profitability of its Ashford Lane property.
3. Accordingly, CTO Realty Growth's business and/or financial prospects were overstated.
4. As a result, the defendants' public statements were materially false and misleading at all relevant times.

The lawsuit claims that investors suffered damages when the true details entered the market. Investors who want to serve as lead plaintiff for the class must file their motions with the court by October 7, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.

Rosen Law Firm is recognized as a leader in shareholder rights litigation, dedicated to helping shareholders recover losses, improving corporate governance structures, and holding company executives accountable for their wrongdoing. The firm has obtained over $1 billion for shareholders since its inception.

For more information, submit a form, email attorney Phillip Kim, or give us a call at 866-767-3653.

References:
[1] https://www.globenewswire.com/news-release/2025/08/11/3131095/0/en/INVESTOR-ALERT-Class-Action-Lawsuit-Filed-on-Behalf-of-CTO-Realty-Growth-Inc-CTO-Investors-Holzer-Holzer-LLC-Encourages-Investors-With-Significant-Losses-to-Contact-the-Firm.html
[2] https://www.businesswire.com/news/home/20250812167453/en/Rosen-Law-Firm-Urges-CTO-Realty-Growth-Inc-NYSE-CTO-CTO-PA-Stockholders-with-Large-Losses-to-Contact-the-Firm-for-Information-About-Their-Rights
[3] https://www.prnewswire.com/news-releases/investor-alert-robbins-llp-informs-investors-of-the--cto-realty-growth-inc-class-action-lawsuit-302525798.html