CTO Realty Growth Class Action Lawsuit: The Optimum Shareholder Playbook on the Pros and Cons of Opting Out of a Securities Class Action Lawsuit [2025]

The CTO Realty Growth lawsuit is a securities class action lawsuit that centers on allegations of misleading investors through the provision of inaccurate or incomplete information regarding the company’s financial status and operations.

Such allegations, if proven true, could result in significant legal and financial consequences for CTO Realty Growth. You need to grasp the magnitude of these claims and their potential impact on the company’s future.

Understanding the CTO Realty Growth class action lawsuit requires analyzing the details of the allegations. Investors claim that CTO Realty Growth’s disclosures were not as transparent as they should have been, leading to financial losses once the truth was revealed. Legal experts are examining whether there was a deliberate attempt to mislead stakeholders, which could lead to punitive measures.

For anyone involved in investing, the CTO Realty Growth lawsuit serves as a stark reminder of the importance of due diligence and the risks associated with corporate investments. As you navigate through the nuances of this case, consider how transparency and accountability play pivotal roles in maintaining investor trust and confidence in the market.

Allegations in the CTO Realty Growth Class Action Lawsuit

CTO Realty Growth is a publicly traded real estate investment trust (“REIT”) that owns and operates a portfolio of purported high-quality, retail-based properties located primarily in higher growth markets in the United States.

The CTO Realty Growth class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:

1. CTO Realty Growth’s dividends were less sustainable than defendants had led investors to believe;
2. CTO Realty Growth used deceptive and unsustainable practices to artificially inflate its Adjusted Funds from Operations (“AFFO”) and overstate the true profitability of its Ashford Lane property; and
3. Accordingly, CTO Realty Growth’s business and/or financial prospects were overstated.

The CTO Realty Growth class action lawsuit alleges that on June 25, 2025, Wolfpack Research published a report entitled “CTO: The B. Riley of REITs” which cited interviews with former employees and whistleblowers and accused CTO Realty Growth of, among other things, “not generat[ing] enough cash to pay its recurring capex and cover its dividends since converting to a REIT in 2021,”

And instead “rel[ying] on dilution (increasing shares outstanding by 70% since December 2022) to cover a $38 million dividend shortfall from 2021 to 2024,” employing a “manipulative definition of [AFFO] where they exclude recurring capex, unlike all of their self-identified shopping center REIT peers,” and “us[ing] a sham loan to hide the collapse of a top tenant from shareholders at Ashford Lane.”

On this news, the price of CTO Realty Growth stock fell more than 5%, according to the complaint.

The Class Action Mechanism

Class action lawsuits allow a group of investors to collectively pursue legal action against a defendant, making it easier for individuals to seek justice without the burden of filing separate lawsuits. This mechanism is particularly beneficial in securities fraud cases, where individual claims may be too costly or complex to pursue independently.

Benefits of Joining the Class Action

1. Collective Strength: By joining forces, investors can leverage their collective resources and experiences to build a stronger case against Lockheed Martin.
2. Cost-Effective: Class actions typically reduce legal costs for individual investors, as expenses are shared among all members of the class.
3. Legal Expertise: Class action lawsuits are often led by experienced attorneys who practive in securities law, increasing the likelihood of a favorable outcome.

Drawbacks of Joining the the CTO Realty Growth Class Action Lawsuit

1. Limited Control: Investors who join a class action may have limited say in legal strategies and decisions made by the lead plaintiff and attorneys.
2. Potentially Lower Compensation: While class actions can lead to compensation, individual investors may receive a smaller share of the settlement compared to what they might achieve through a separate lawsuit.
3. Time-Consuming Process: Class action lawsuits can take years to resolve, which may delay compensation for affected investors.

The Decision to Opt-Out

Opting out of the CTO Realty Growth class action lawsuit allows investors to pursue their claims independently. This decision can have significant implications, both positive and negative.

Advantages of Opting Out of the CTO Realty Growth Lawsuit

1. Greater Control: Investors who opt out can dictate their legal strategy, choose their attorney, and make decisions that align with their specific circumstances.
2. Potential for Higher Compensation: By pursuing an individual claim, investors may be able to negotiate a larger settlement or judgment, particularly if their losses are substantial.
3. Tailored Legal Approach: Opting out allows investors to focus on their unique experiences and losses, potentially leading to a more personalized legal strategy.

Disadvantages of Opting Out of the CTO Realty Growth Lawsuit

1. Increased Costs: Individual lawsuits can be expensive, as investors must bear all legal fees and costs associated with their claims.
2. Resource Limitations: Individual investors may lack the resources and expertise to effectively pursue a case against a corporation like Lockheed Martin, which may have significant legal and financial backing.
3. Risk of Losing: Opting out means that investors are solely responsible for their claims. If they lose, they may not receive any compensation for their losses.

Factors to Consider Before Making a Decision

Before deciding whether to opt out of the CTO Realty Growth class action lawsuit, investors should carefully evaluate several factors.

Financial Impact of the CTO Realty Growth Class Action Lawsuit

Investors should assess the extent of their financial losses and consider whether pursuing an individual claim is worth the potential costs involved. A thorough analysis of the potential compensation versus legal expenses is crucial.

Legal Representation

The choice of legal representation can significantly influence the outcome of a case. Investors should seek attorneys with experience in securities law and a proven track record in similar cases. This expertise can be invaluable in navigating the complexities of individual claims.

Time Commitment

Pursuing an individual lawsuit may require a significant time investment. Investors should consider their willingness and ability to engage in a lengthy legal process, which may involve extensive documentation and court appearances.

The Role of Legal Counsel

Engaging legal counsel is essential for investors considering their options in the CTO Realty Growth class action lawsuit. Attorneys can provide valuable insights into the merits of individual claims versus joining the class action.

Finding the Right Attorney for the CTO Realty Growth Lawsuit

When selecting an attorney, investors should look for:

• Experience in Securities Law: An attorney with a background in securities litigation will be better equipped to handle the complexities of the case.
• Reputation: Researching an attorney’s reputation and past successes can help investors make an informed choice.
• Communication Skills: Effective communication is vital for understanding the legal process and staying informed about case developments.

Legal Fees and Costs

Investors should discuss legal fees upfront with potential attorneys. Understanding the fee structure, whether it’s a contingency fee or hourly rate, is crucial for budgeting and financial planning.

Staying Informed Throughout the Process

Regardless of the decision to join the class action or opt out, staying informed about the CTO Realty Growth class action lawsuit is essential for all investors.

Monitoring Case Developments

Investors should actively monitor updates related to the lawsuit, including court rulings, settlement negotiations, and any changes in the legal landscape. This information can significantly impact their decisions and strategies.

Engaging with Legal Counsel

Maintaining open lines of communication with legal counsel is vital for understanding the implications of case developments. Regular updates from attorneys can help investors assess their options and make informed decisions.

Conclusion

The decision to opt out of the CTO Realty Growth class action lawsuit is a significant one that requires careful consideration of the potential benefits and drawbacks. While joining the class action offers collective strength and reduced costs, opting out provides greater control and the possibility of higher compensation. Ultimately, investors must weigh their individual circumstances, financial impact, and legal options to make the best choice for their situation.

By staying informed and seeking expert legal counsel, investors can navigate the complexities of the Lockheed Martin class action lawsuit and advocate for their rights effectively. Whether participating in the class action or pursuing an individual claim, understanding the legal landscape is crucial for achieving a favorable outcome.

Frequently Asked Questions About the CTO Realty Growth Lawsuit