SAN DIEGO, Aug. 11, 2025 /PRNewswire/ -- Robbins LLP informs stockholders that a class action was filed on behalf of investors who purchased or otherwise acquired CTO Realty Growth, Inc. (NYSE: CTO) securities between February 18, 2021 and June 24, 2025. CTO 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 U.S.

For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.

The Allegations: Robbins LLP is Investigating Allegations that CTO Realty Growth, Inc. (CTO) Misled Investors Regarding its Financial Prospects

According to the complaint, during the class period, defendants failed to disclose that: (i) CTO's dividends were less sustainable than defendants had led investors to believe; (ii) the Company used deceptive and unsustainable practices to artificially inflate its Adjusted Funds from Operations and overstate the true profitability of its Ashford Lane property; and (iii) accordingly, CTO's business and/or financial prospects were overstated.

The complaint alleges that on June 25, 2025, Wolfpack Research published a report entitled "CTO: The B. Riley of REITs." The report accused CTO of, among other things, "not generat[ing] enough cash to pay its recurring capex and cover its dividends since converting to a REIT in 2021" and instead "rel [ying] on dilution (increasing shares outstanding by 70% since December 2022) to cover a $38 million dividend shortfall from 2021 to 2024," employing a "manipulative definition of [AFFO] where they exclude recurring capex, unlike all of their self-identified shopping center REIT peers," and "us[ing ] a sham loan to hide the collapse of a top tenant from shareholders at Ashford Lane." The report further noted 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, along with approximately $12 million in additional planned capital expenditures. On this news, the price of CTO's stock fell over 5%.

What Now: You may be eligible to participate in the class action against CTO Realty Growth, Inc. Shareholders who want to serve as lead plaintiff for the class must submit their papers with the court by October 7, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. 

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SOURCE Robbins LLP