Rosen Law Firm Urges CTO Realty Investors to Join Class Action Before Deadline

What's Happening?

The Rosen Law Firm, a prominent global investor rights law firm, is urging investors of CTO Realty Growth, Inc. to join a class action lawsuit before the lead plaintiff deadline on October 7, 2025. The lawsuit pertains to securities purchased between February 18, 2021, and June 24, 2025. The firm alleges that CTO Realty Growth made false and misleading statements regarding the sustainability of its dividends and the profitability of its Ashford Lane property. These actions allegedly led to an artificial inflation of the company's Adjusted Funds from Operations (AFFO), misleading investors about the company's financial health. The lawsuit claims that once the true details were revealed, investors suffered financial damages.

Why It's Important?

This class action lawsuit is significant as it highlights potential corporate governance issues within CTO Realty Growth, which could have broader implications for investor trust and market stability. If the allegations are proven, it could result in substantial financial compensation for affected investors and potentially lead to stricter regulatory scrutiny of the company's financial disclosures. The outcome of this case could also influence investor confidence in similar real estate investment trusts (REITs) and their financial practices. The Rosen Law Firm's involvement underscores the importance of selecting experienced legal counsel in securities litigation, which can impact the effectiveness of investor protection and recovery efforts.

What's Next?

Investors interested in participating in the class action must decide whether to serve as lead plaintiffs by the October 7 deadline. The court will then determine whether to certify the class, which will influence the progression of the lawsuit. If certified, the case will proceed with the lead plaintiffs representing the class in litigation. The outcome could lead to a settlement or a court ruling, potentially affecting CTO Realty Growth's financial standing and investor relations. Stakeholders, including other REITs and financial regulators, will likely monitor the case closely for its implications on industry practices and investor protections.