CTO Realty Growth(US:CTO) Globenewswire·2025-09-25 16:05Core 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 [4][6]. Group 1: Allegations Against CTO - 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 [6]. - CTO is accused of using deceptive practices to inflate its Adjusted Funds From Operations (AFFO) and overstate the profitability of its Ashford Lane property [6]. - 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 instead on share dilution [7]. Group 2: Financial Impact - 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 [8]. - CTO faces a quarterly dividend obligation of $14 million while having only $8.4 million in cash, indicating potential financial distress [7]. Group 3: Legal Proceedings - Investors who suffered losses in CTO are encouraged to contact Faruqi & Faruqi to discuss their legal rights, with a deadline of October 7, 2025, to seek the role of lead plaintiff in the class action [4][9]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [5].