What are the potential timeline and milestones for the class action litigation?

Timeline & Key Milestones

- October 7 2025 – Deadline to File as Lead Plaintiff – Investors who wish to be the “lead plaintiff” must submit a petition to the U.S. District Court before this date. The filing window is relatively narrow; any investor who misses it will be relegated to a “class member” position, which limits their ability to influence settlement negotiations or recover attorney fees.

- Late 2025 – Early 2026 – Initial Court Proceedings – After the deadline, the court will convene a lead‑plaintiff hearing (typically within 30‑60 days of the filing deadline). The judge will evaluate the petition’s merits, the size of the alleged loss, and the plaintiff’s resources. A successful petition results in a “lead plaintiff” designation and a “lead counsel” appointment, which then drives the litigation strategy.

- 2026‑2027 – Discovery & Settlement Negotiations – Once a lead plaintiff is confirmed, the case moves into the discovery phase (often 12‑18 months). Expect subpoenas, production of internal CTO Realty Growth communications, and expert analyses. Many securities class actions settle during this window, especially if the company’s stock price has been depressed and the plaintiffs can negotiate a cash or “re‑purchase” settlement. A settlement would likely be announced in the mid‑2026 timeframe, depending on the strength of the evidence and the company’s willingness to avoid a protracted trial.

- Late 2027 – Potential Trial / Verdict – If discovery does not produce a settlement, the case proceeds to pre‑trial motions and a trial schedule that could push the final resolution into 2028. A trial outcome—either a judgment in favor of investors or a dismissal—will create a “binary” price reaction when the verdict is announced.

Trading Implications

- Short‑Term: The October 2025 deadline is a catalyst. Expect heightened volume and price volatility in the weeks leading up to the deadline as investors either file to become lead plaintiff or position themselves as passive class members. The stock’s technical chart shows a descending triangle with the 20‑day EMA below the 50‑day EMA, indicating bearish pressure; a break above the $2.70 resistance line could signal a short‑cover rally driven by speculative buying.

- Mid‑Term: If a lead plaintiff is appointed and the case proceeds to discovery, the stock may trade on “settlement odds.” Historically, CTO‑type securities have rallied 10‑15 % on settlement rumors, but the upside is capped unless a sizable cash settlement is announced. Traders should consider buying on a bounce above the 20‑day moving average with a stop just below the recent low ($2.45) to capture upside while limiting downside.

- Long‑Term: A settlement before 2027 would likely create a short‑term spike, followed by a return to pre‑announcement levels. A trial loss for the company would trigger a sharp downside (5‑10 % drop). Keep an eye on SEC filings (Form 8‑K, 10‑Q) for updates on the lead‑plaintiff hearing and any “material event” disclosures; these are the most reliable triggers for position adjustments.