CTO Realty shareholder lawsuit alleges deceptive dividend practices.

A shareholder class action lawsuit has been filed against CTO Realty Growth, alleging that the company's dividends were less sustainable than defendants led investors to believe, and that the company used deceptive practices to inflate its Adjusted Funds from Operations and overstate profitability. Investors who purchased shares between February 18, 2021 and June 24, 2025 and experienced a significant loss are encouraged to contact Corey D. Holzer, Esq. to discuss their legal rights.

A shareholder class action lawsuit has been filed against CTO Realty Growth Inc. (CTO), a publicly traded real estate investment trust (REIT), alleging that the company misled investors regarding its financial prospects. The lawsuit, filed by Robbins LLP and Pomerantz LLP, claims that CTO's dividends were less sustainable than defendants had led investors to believe and that the company used deceptive practices to inflate its Adjusted Funds from Operations (AFFO) and overstate profitability.

The class action lawsuit, which was filed on August 11, 2025, is on behalf of investors who purchased or otherwise acquired CTO securities between February 18, 2021 and June 24, 2025. The lawsuit alleges that during this period, CTO failed to disclose that its dividends were less sustainable than claimed, used deceptive and unsustainable practices to artificially inflate its AFFO, and overstated the true profitability of its Ashford Lane property. The lawsuit also alleges that CTO's business and financial prospects were overstated as a result of these practices [1].

On June 25, 2025, Wolfpack Research published a report titled "CTO: The B. Riley of REITs," which accused CTO of various financial improprieties. The report noted that CTO had not generated enough cash to pay its recurring capital expenditures and cover its dividends since converting to a REIT in 2021. Instead, CTO relied on dilution to cover a $38 million dividend shortfall from 2021 to 2024. The report also accused CTO of using a sham loan to hide the collapse of a top tenant at Ashford Lane. Following the publication of the report, CTO's stock price fell by 5.42% [2].

Investors who purchased shares during the specified period and experienced a significant loss are encouraged to contact Corey D. Holzer, Esq. to discuss their legal rights. The deadline for shareholders to ask the court to appoint a lead plaintiff for the class is October 7, 2025.

References:
[1] https://www.marketscreener.com/news/investor-alert-robbins-llp-informs-investors-of-the-cto-realty-growth-inc-class-action-lawsuit-ce7c5ed2da8bf422
[2] https://www.marketscreener.com/news/pomerantz-law-firm-announces-the-filing-of-a-class-action-against-cto-realty-growth-inc-and-certai-ce7c5ed2d18cf422