Pomerantz LLP files class action against CTO Realty Growth over securities violations.

Pomerantz LLP has filed a class-action lawsuit against CTO Realty Growth, Inc. and certain officers. The lawsuit seeks damages for violations of federal securities laws and is on behalf of all persons who purchased CTO securities between February 18, 2021, and June 24, 2025. The case is docketed under 25-cv-01516 in the US District Court for the Middle District of Florida. Investors who purchased CTO securities during this period have until October 7, 2025, to request appointment as Lead Plaintiff.

Pomerantz LLP has filed a class-action lawsuit against CTO Realty Growth, Inc. (NYSE: CTO) and certain officers. The lawsuit seeks damages for violations of federal securities laws and is on behalf of all persons who purchased CTO securities between February 18, 2021, and June 24, 2025. The case is docketed under 25-cv-01516 in the US District Court for the Middle District of Florida [3].

The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) CTO’s dividends were less sustainable than Defendants had led investors to believe; (2) 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; (3) accordingly, CTO’s business and/or financial prospects were overstated; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times [2].

Investors who purchased or otherwise acquired CTO securities during the Class Period have until October 7, 2025, to request appointment as Lead Plaintiff in this putative class action lawsuit [3].

CTO Realty Growth, Inc. is a publicly traded real estate investment trust (REIT) that owns and operates a portfolio of purported high-quality, retail-based properties located primarily in higher growth markets in the United States. The Company converted into a REIT in February 2021 and, as of December 31, 2024, owned 23 income properties in seven states, including Ashford Lane, a retail and dining center in Atlanta, Georgia. Under guidelines established by the U.S. Securities and Exchange Commission (SEC), REITs must pay out at least 90% of their taxable profits to shareholders annually as dividends. In return, REIT companies are exempt from most corporate income tax [3].

Investors are advised to review the complaint and consult with legal counsel if they have questions about their rights or potential claims. For more information, visit Pomerantz LLP’s website or contact Danielle Peyton at 646-581-9980 or 888.4-POMLAW (toll-free), Ext. 7980 [3].

References:
[1] https://www.morningstar.com/news/pr-newswire/20250818dc54042/cto-investors-have-opportunity-to-lead-cto-realty-growth-inc-securities-fraud-lawsuit
[2] https://www.morningstar.com/news/business-wire/20250821335536/deadline-alert-cto-realty-growth-inc-cto-investors-who-lost-money-urged-to-contact-glancy-prongay-murray-llp-about-securities-fraud-lawsuit
[3] https://www.prnewswire.com/news-releases/pomerantz-law-firm-announces-the-filing-of-a-class-action-against-cto-realty-growth-inc-and-certain-officers--cto-302535437.html