1. CTO Realty Growth is under investigation for securities law violations. 2. Claims include financial misleading and property profitability overstating. 3. $38 million dividend shortfall linked to shareholder dilution reported. 4. Stock price fell 5.42% following the news, closing at $17.10. 5. Investors can seek lead plaintiff status by October 7, 2025.
The investigation and allegations of financial manipulation significantly undermine investor confidence, similar to past cases like Wirecard AG, which saw dramatic valuation drops after fraud allegations surfaced.
High likelihood of news affecting CTO's stock valuation due to serious legal implications.
Immediate impact likely due to current investigations, expecting possible further stock declines as the situation develops.
PHILADELPHIA, Aug. 15, 2025 /PRNewswire/ -- Berger Montague PC is investigating claims under the federal securities laws against CTO Realty Growth, Inc. (NYSE:CTO) ("CTO" or the "Company"), a real estate investment trust (REIT) headquartered in Winter Park, Florida.
Investor Deadline: Investors who purchased or acquired CTO securities between February 18, 2021 through June 24, 2025 (the "Class Period") may, no later than October 7, 2025, seek to be appointed as a lead plaintiff representative of the class. To learn your rights, CLICK HERE.
According to the lawsuit, CTO misled investors as to its financial condition by, among other things, manipulating key metrics and overstating the profitability of certain properties, such as Ashford Lane in Atlanta.
On June 25, 2025, a report by short-seller Wolfpack Research accused CTO of covering a $38 million dividend shortfall by significantly diluting shareholders—expanding its outstanding share count by 70%—and using a "sham loan" to mask a collapsed tenant at Ashford Lane.
This news led to a 5.42% drop in CTO's stock, closing at $17.10 per share on June 25, 2025.
If you are a CTO investor and would like to learn more about this action, CLICK HERE or please contact Berger Montague: Andrew Abramowitz at aabramowitz@bergermontague.com or (215) 875-3015, or Caitlin Adorni at cadorni@bergermontague.com or (267)764-4865.
About Berger Montague
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco, Chicago, Malvern, PA, and Toronto, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
For more information or to discuss your rights, please contact:
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bergermontague.com
Caitlin Adorni
Berger Montague
(267) 764-4865
cadorni@bergermontague.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/berger-montague-pc-announces-class-action-filed-against-cto-realty-growth-inc-nyse-cto-for-alleged-securities-violations-302530715.html
SOURCE Berger Montague