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Securities law

Securities Class Action Filed Against CTO Realty Growth, Inc. - October 7, 2025 Deadline to Seek Lead Plaintiff

Strategic Insights

— 2 min read

A securities class action has been filed against CTO Realty Growth, Inc. ("CTO" or the "Company") (NYSE: CTO) alleging false and/or misleading statements and/or failing to disclose that the Company's dividends were less sustainable than Defendants had led investors to believe, and that the Company used deceptive and unsustainable practices to artificially inflate its Adjusted Funds From Operations (AFFO) and overstate the true profitability of its Ashford Lane property. Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against CTO and reminds investors of the October 7, 2025 deadline to seek the role of lead plaintiff in the federal securities class action.

On June 25, 2025, a report entitled "CTO: The B. Riley of REITs" published by Wolfpack Research ("Wolfpack") accused CTO of using a manipulative definition of AFFO, excluding recurring capital expenditures unlike all of their self-identified shopping center REIT peers, and using a sham loan to hide the collapse of a top tenant from shareholders at Ashford Lane. Wolfpack predicted imminent further dilution of the Company, noting that CTO has just $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million per quarter. This news caused CTO's stock price to fall $0.98 per share, or 5.42%, to close at $17.10 per share on June 25, 2025.

Key Takeaways:

  • A securities class action has been filed against CTO Realty Growth, Inc. alleging false and/or misleading statements and/or failing to disclose that the Company's dividends were less sustainable than Defendants had led investors to believe.
  • The Company is accused of using a manipulative definition of AFFO to artificially inflate its profitability and exclude recurring capital expenditures.
  • Wolfpack Research published a report on June 25, 2025, predicting imminent further dilution of the Company, citing low cash reserves and unsustainable quarterly dividends.
  • The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members.
  • Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice.

Statistics:

  • CTO's stock price fell $0.98 per share, or 5.42%, to close at $17.10 per share on June 25, 2025, following the publication of the Wolfpack Report.
  • The Company has just $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million per quarter.
  • The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class.

Sources:

  • "CTO: The B. Riley of REITs" report by Wolfpack Research, June 25, 2025.
  • Press release by Faruqi & Faruqi, LLP, September 8, 2025.

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