CTO Realty Growth(US:CTO) Prnewswireยท2025-09-24 14:30Core 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 by October 7, 2025 [1][3]. Group 1: Allegations Against CTO Realty Growth - The complaint alleges that CTO and its executives violated federal securities laws by making false statements and failing to disclose that CTO's dividends were less sustainable than claimed [3]. - The company reportedly used deceptive practices to inflate its Adjusted Funds From Operations (AFFO) and overstate the profitability of its Ashford Lane property [3]. - The Wolfpack Research report criticized CTO for not generating enough cash to cover its recurring capital expenditures and dividends since converting to a REIT in 2021, indicating reliance on share dilution to cover a $38 million dividend shortfall [4]. Group 2: Financial Impact and Stock Performance - Following the release of the Wolfpack Report, CTO's stock price fell by $0.98, or 5.42%, closing at $17.10 per share on June 25, 2025 [5]. - The report highlighted that CTO has only $8.4 million in cash while facing quarterly dividends of $14 million and average recurring capital expenditures of $5.7 million, suggesting imminent further dilution [4]. Group 3: Legal Proceedings and Investor Actions - Investors who suffered losses exceeding $75,000 in CTO between February 18, 2021, and June 24, 2025, are encouraged to contact Faruqi & Faruqi to discuss their legal rights [1]. - The firm is seeking to appoint a lead plaintiff who has the largest financial interest in the relief sought by the class, with any member able to move the court to serve as lead plaintiff [6].