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Class action lawsuits

Investigation into CTO Realty Growth, Inc. by Federal Regulators

Strategic Insights

— 1 min read

Investors who purchased securities of CTO Realty Growth, Inc. (NYSE: CTO) between February 18, 2021, and June 24, 2025, may seek to be appointed as lead plaintiff representative of the class in the ongoing investigation. The investigation claims that the company misled investors about its financial condition, manipulating key metrics and overstating the profitability of certain properties, such as Ashford Lane in Atlanta. A report by short-seller Wolfpack Research accused CTO of covering a $38 million dividend shortfall by significantly diluting shareholders and using a "sham loan" to mask a collapsed tenant at Ashford Lane.

Key Takeaways:

  • CTO Realty Growth, Inc. is the subject of an ongoing investigation by federal regulators under the federal securities laws.
  • Investors who purchased CTO securities between February 18, 2021, and June 24, 2025, may seek to be appointed as lead plaintiff representative of the class.
  • The investigation claims that CTO misled investors by manipulating key metrics and overstating the profitability of certain properties, such as Ashford Lane in Atlanta.
  • Wolfpack Research accused CTO of covering a $38 million dividend shortfall through share dilution and using a "sham loan" to conceal a collapsed tenant at Ashford Lane.
  • The news led to a 5.42% drop in CTO's stock on June 25, 2025, closing at $17.10 per share.
  • Berger Montague, a law firm with over 50 years of experience, is representing investors in this matter.
  • The law firm is seeking to be appointed as lead counsel in the investigation.

Statistics:

  • $38 million: the alleged dividend shortfall covered by CTO through share dilution.
  • 70%: the amount by which CTO expanded its outstanding share count to cover the dividend shortfall.
  • 5.42%: the drop in CTO's stock on June 25, 2025, following the Wolfpack Research report.
  • $17.10: the closing price of CTO's stock on June 25, 2025.
  • February 18, 2021: the start of the class period in which investors may seek to be appointed as lead plaintiff representative.
  • June 24, 2025: the end of the class period for investors who purchased CTO securities during that time.
  • October 7, 2025: the deadline for investors to seek appointment as lead plaintiff representative.

Sources:

  • PRNewswire: "Is your press release here?"
  • CTO Realty Growth, Inc.: Source not specified in the original text.
  • Wolfpack Research: Source not specified in the original text.
  • Berger Montague: Source not specified in the original text.

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