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Class action lawsuits

Berger Montague Investigates Securities Fraud Claims Against CTO Realty Growth, Inc.

Strategic Insights

— 1 min read

Berger Montague, a prominent law firm specializing in securities class action litigation, is investigating potential securities fraud claims on behalf of investors of CTO Realty Growth, Inc. (NYSE: CTO). The firm's investigation follows the filing of a securities class action lawsuit alleging financial manipulation by CTO, including covering a $38 million dividend gap and using a "sham loan" to hide a major tenant failure. The lawsuit claims that investors who purchased or otherwise acquired CTO securities between February 18, 2021, and June 24, 2025, may be eligible to seek damages.

Key Takeaways:

  • Berger Montague is investigating potential securities fraud claims against CTO Realty Growth, Inc. (NYSE: CTO) on behalf of investors who purchased or acquired CTO securities between February 18, 2021, and June 24, 2025.
  • The investigation follows the filing of a securities class action lawsuit alleging that CTO covered a $38 million dividend gap by diluting its shares and excluding necessary recurring capital expenditures from its Adjusted Funds From Operations-a metric used to measure REIT profitability.
  • The lawsuit also claims that CTO used a "sham loan" to hide a major tenant failure at Ashford Lane, a key property.
  • After the disclosure, CTO stock fell nearly 6%, closing at $17.10 per share on June 25, 2025.
  • The lawsuit was filed on behalf of investors who purchased or otherwise acquired CTO securities during the Class Period (February 18, 2021, through June 24, 2025).
  • Investors who purchased or acquired CTO securities during the Class Period may seek to be appointed as a lead plaintiff representative of the class no later than October 7, 2025.

Statistics:

  • The Class Period spans from February 18, 2021, to June 24, 2025.
  • CTO stock fell nearly 6% after the disclosure, closing at $17.10 per share on June 25, 2025.
  • Berger Montague has been a pioneer in securities class action litigation since 1970, representing individual and institutional investors for over five decades.
  • The firm has served as lead counsel in courts throughout the United States.

Sources:

  • Berger Montague PC
  • Securities and Exchange Commission (SEC)
  • American Bar Association (ABA)
  • CTO Realty Growth, Inc. (NYSE: CTO)

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