What's Happening?
CTO Realty Growth, Inc. is currently facing a class action lawsuit filed by Rosen Law Firm, a global investor rights law firm. The lawsuit alleges that CTO Realty and its executives made false and misleading statements regarding the sustainability of the company's dividends and used deceptive practices to inflate its Adjusted Funds from Operations (AFFO) and overstate profitability. The class action covers investors who purchased CTO securities between February 18, 2021, and June 24, 2025. The deadline for investors to serve as lead plaintiff is October 7, 2025.
Why It's Important?
The lawsuit against CTO Realty highlights significant concerns about corporate transparency and investor protection. If the allegations are proven, it could lead to substantial financial repercussions for the company and affect its stock value. Investors who suffered losses may seek compensation, and the case could set a precedent for how similar cases are handled in the future. The outcome of this lawsuit could also impact investor confidence in the real estate investment trust (REIT) sector, particularly regarding the sustainability of dividends and financial disclosures.
What's Next?
Investors interested in participating in the class action must decide whether to serve as lead plaintiff by the October 7 deadline. The court will appoint a lead plaintiff to represent the class in directing the litigation. The case will proceed through the legal system, potentially leading to a settlement or trial. The outcome could influence future regulatory actions and corporate governance practices within the REIT industry.
