Rosen Law Firm Urges CTO Realty Investors to Act Before Key Deadline

2025-08-31 companies

New York, Sunday, 31 August 2025.
Investors in CTO Realty Growth are encouraged to seek legal counsel promptly due to claims of misrepresentations on dividends and profitability, with a deadline looming in the securities class action case.

Background on CTO Realty Growth Lawsuit

CTO Realty Growth, Inc. (NYSE: CTO), a publicly traded real estate investment trust, is currently embroiled in a class action lawsuit concerning allegations of misleading statements and financial reporting concerning their dividends and financial outlook. The claims emphasize that between February 18, 2021, and June 24, 2025, the company misrepresented its dividends’ sustainability and the true profitability of its assets, notably the Ashford Lane property, leading to an artificially inflated sense of company performance when compared to reality [1][2].

Details of the Legal Allegations

The lawsuit, spearheaded by the Rosen Law Firm and supported by other legal entities including the Law Offices of Howard G. Smith and Glancy Prongay & Murray LLP, posits that CTO Realty adopted deceptive practices to boost Adjusted Funds from Operations (AFFO), thereby misleading investors about their future profitability and stability. Specifically, CTO Realty allegedly overstated its business prospects while the reality of their financial situation, which includes reduced earnings per share and increased short interest, tells a different story. In this context, the company’s actions appear to violate investor trust and standard financial disclosure practices [1][3][4].

Consequences and Investor Actions

As the October 7, 2025, deadline for the lead plaintiff motion fast approaches, affected investors are urged to consider their legal options and participate in the ongoing class action. Rosen Law Firm, among others, encourages investors who incurred losses during the specified class period to seek representation and pursue possible compensation. The goal is to hold CTO Realty accountable and potentially regain lost investments through judicial channels. Potential plaintiffs are reminded that they can join the lawsuit cost-free, as legal representation is offered on a contingency basis [1][5].

Market Response and Current Status

In the wake of these revelations, CTO Realty Growth’s market performance has experienced volatility, with a noticeable decline in stock price following allegations. As observed, short interest has risen by 8.55%, reflecting a growing skepticism among investors. Despite the challenges, some analysts maintain a consensus ‘Buy’ rating, indicating trust in the company’s potential to manage and resolve current issues while projecting a potential price target of $22.00, a noticeable increase from its current trading range of $17.16 to $17.33 [3][5][6].

Sources

CTO Realty investor counsel