CTO Realty Growth(US:CTO) Prnewswireยท2025-09-06 12:42Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against CTO Realty Growth, Inc. due to allegations of misleading statements regarding the sustainability of dividends and financial practices, with a deadline for investors to seek lead plaintiff status in a class action lawsuit by October 7, 2025 [1][3][6]. Group 1: Allegations Against CTO - The complaint alleges that CTO and its executives violated federal securities laws by making false and misleading statements about the sustainability of dividends and the true profitability of its Ashford Lane property [3]. - The Wolfpack Research report claims CTO has not generated enough cash to cover its recurring capital expenditures and dividends since converting to a REIT in 2021, relying on share dilution to cover a $38 million dividend shortfall from 2021 to 2024 [4]. - The report also accuses CTO of using a manipulative definition of Adjusted Funds From Operations (AFFO) and hiding financial issues related to a major tenant at Ashford Lane [4]. Group 2: Financial Impact - Following the release of the Wolfpack Report, CTO's stock price fell by $0.98 per share, or 5.42%, closing at $17.10 per share on June 25, 2025 [5]. - CTO is reported to have only $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million, indicating potential financial strain [4]. Group 3: Legal Proceedings - Investors who purchased CTO securities between February 18, 2021, and June 24, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights and options [1][6]. - The firm is also seeking information from whistleblowers, former employees, and shareholders regarding CTO's conduct [6].