Stockholder Rights Firm Investigates CTO Realty Growth for Securities Violations

2025-07-02 companies

New York, Wednesday, 2 July 2025.
Bragar Eagel & Squire is scrutinizing CTO Realty Growth for alleged manipulative practices, following a June report that led to a stock price decline.

Investigation Announced Amid Financial Allegations

On July 1, 2025, the shareholder rights law firm Bragar Eagel & Squire publicized its investigation into CTO Realty Growth, Inc. (NYSE:CTO) for potential breaches of securities laws [1]. This development followed a report by Wolfpack Research on June 25, 2025, which accused the real estate investment trust (REIT) of using deceptive financial reporting methods. The allegations include the manipulation of financial metrics such as Adjusted Funds From Operation (AFFO), as well as the concealment of cash flow issues through questionable loans [2][3].

Impact on Stock and Company Reputation

Following the Wolfpack report, CTO Realty Growth’s stock experienced a significant drop, closing at $17.10 per share—a reduction of $0.98 per share on June 25, 2025 [2]. This immediate reaction highlights investor concerns over the alleged financial irregularities and potential for inflated executive bonuses, reportedly increased by $8 million through the use of misleading non-GAAP metrics [3][4]. Meanwhile, Hagens Berman, another law firm, has also initiated an inquiry into these accusations, underlining the gravity of the situation [3].

Legal Proceedings and Next Steps for Shareholders

The investigations by Bragar Eagel & Squire, alongside Hagens Berman, suggest a turbulent period ahead for CTO Realty Growth, with prospects of legal challenges that could affect its financial stability and shareholder value [1][3]. Shareholders have been urged to reach out to these firms to comprehend the full extent of their potential losses and participate in any forthcoming legal actions. Notably, the law firms emphasize the possibility of recovering damages for affected investors [4][5].

Conclusion and Broader Implications

This critical scrutiny of CTO Realty Growth not only poses risks to its market performance but also serves as a cautionary tale for other REITs under the watchful eye of shareholder advocacy groups. The inclination towards transparency in financial reporting is likely to grow stronger, with increased pressure on companies to uphold rigorous standards in their public disclosures [3][6].

Sources

CTO Realty shareholder investigation