CTO Realty Growth's Legal Issues: Understanding the Risks Ahead

Author: Addison Perry Updated: 09-25-2025 05:42 PM

CTO Realty Growth, Inc. Faces Legal Scrutiny

CTO Realty Growth, Inc. (NYSE: CTO), a notable player in the real estate investment sector, is currently under investigation regarding potential violations of federal securities laws. This investigation, led by the law firm Berger Montague, highlights the serious concerns surrounding the company's financial practices and investor communications.

Understanding the Allegations Against CTO Realty Growth

The allegations against CTO suggest that the company may have misled investors about its financial status. Specifically, the claims indicate that CTO manipulated key financial metrics, leading to an inflated perception of its profitability, particularly regarding some specific properties.

Overview of the Class Period

Investors who acquired CTO securities during the designated class period of February 18, 2021, to June 24, 2025, are being urged to consider their legal options. The deadline for these investors to seek representation as lead plaintiffs is set for October 7, 2025.

Impact on Shareholder Value

A report from a prominent short-seller accused CTO of addressing a significant $38 million dividend shortfall through drastic measures. The report detailed a 70% increase in the company’s outstanding shares, indicating possible dilution of shareholder value and a questionable financial strategy that included employing a so-called "sham loan." This negative publicity resulted in a notable decline in CTO’s stock price, dropping 5.42% to $17.10 per share.

Investor Considerations

If you hold shares in CTO Realty Growth, it is crucial to stay informed and consider the implications of these allegations. The ongoing investigation poses risks that could significantly affect the company's market performance and overall investor sentiment.

Taking Action

Investors are invited to learn more about their rights and the potential class action lawsuit. Engaging with legal counsel specialized in securities law could be an essential step for those impacted by the recent developments.

About Berger Montague

Berger Montague is a law firm with a strong history in handling securities class action litigation since its inception in 1970. With offices across major U.S. cities, the firm has successfully advocated on behalf of both individual and institutional investors over the course of more than fifty years.

Contact Information

For investors seeking more information, please reach out to: Andrew Abramowitz, Senior Counsel at Berger Montague by calling (215) 875-3015 or via email at aabramowitz@bergermontague.com. You can also contact Caitlin Adorni at (267) 764-4865 or email cadorni@bergermontague.com.

Frequently Asked Questions

What is the current legal situation for CTO Realty Growth?

CTO Realty Growth is under investigation for potential violations of federal securities laws regarding investor communications and financial metrics manipulation.

Who is leading the investigation?

The investigation is being led by Berger Montague, a law firm experienced in handling securities class action litigation.

What should investors do if they hold CTO securities?

Investors should consider their legal options and may want to seek representation as lead plaintiffs if they fit within the class period of February 18, 2021, to June 24, 2025.

What was the impact of the recent allegations on CTO's stock?

Following the allegations, CTO's stock price fell by 5.42%, closing at $17.10 per share.

How long do investors have to act?

Investors have until October 7, 2025, to seek designation as lead plaintiff representatives in the class action lawsuit.

About The Author

Hello, I'm 30-year-old financial writer and expert Addison Perry, and I love to simplify the intricacies of the financial industry. I've committed myself over the years to deciphering the subtleties of investing techniques and economic trends and converting them into doable guidance that anybody can use. My goal with writings and books is to make money interesting and approachable so that readers may take charge of their financial futures.

My enthusiasm to empowerment and education has propelled me through my career in finance. I write because I think that everyone should be able to make educated financial decisions, and I try to provide that. Regardless of experience level with investing, my work is intended to provide insightful analysis and practical advice to enable you to thrive in the always changing financial environment. I appreciate you traveling with me toward success and financial literacy.

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