Allegations Shake CTO Realty Growth as Hagens Berman Launches Investigation

Investors’ Shock Amidst Declining Shares

On a seemingly ordinary day for investors of CTO Realty Growth, Inc. (NYSE: CTO), the ground beneath them shifted dramatically. June 25, 2025, marked a noticeable decline in share value, triggered by a bombshell report by Wolfpack Research that accuses the company of misleading its investors about the sustainability of its dividend and engaging in questionable financial practices.

A Call to Action: Hagens Berman Steps In

In response to the unsettling claims, Hagens Berman, a seasoned national shareholders rights firm, has launched a deep-seated investigation. “We’re probing into whether CTO deceived its investors about the quality of its real estate portfolio and its application of accounting metrics,” Reed Kathrein, leading Hagens Berman’s charge, stated emphatically.

Inside the Allegations: A Closer Look

The Wolfpack Research report, partly hinged on anonymous interviews, portrays CTO in stark contrast to its self-declared image. Accusations include lying to investors about dividend viability and employing deceptive accounting techniques, such as sham loans to mask tenant failures. This raises significant concerns about the management’s definition and use of Adjusted Funds From Operation (AFFO), with claims of inflating bonuses unjustifiably.

Looking for Clarity: A Call to Whistleblowers

Adding another layer to this unfolding drama, Hagens Berman is reaching out to potential whistleblowers. They emphasize the crucial role non-public information can play and highlight the enticing SEC Whistleblower program, which may reward informants up to 30% of successful recoveries. It’s a chance for those in the know to come forward, positively impacting the ongoing investigation.

The Bigger Picture: CTO’s Future at Stake

While CTO assures its commitment to maintaining transparency and high standards, these allegations suggest underlying issues that, if proven, could spell major complications for the company. It’s a time of heightened scrutiny and reflection for CTO, as investors and stakeholders hold their breath awaiting a resolution.

Conclusion

This challenging scenario brings to light the delicate balance companies must maintain between growth and ethical practices. According to TradingView, the developments around CTO Realty Growth, Inc. serve as a poignant reminder of the vigilance required in financial undertakings, ensuring that truth and accountability rise to the forefront in the business world.

For those affected, the call to action is clear: submit your losses and lend a voice to the investigation, fostering a financial ecosystem where integrity prevails.