Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 1214

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 3
Chunk 1214
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Item 3. Legal Proceedings.

From time to time the
Company is involved in litigation, claims, and other proceedings arising in the ordinary course of business. Such litigation and
other proceedings may include, but are not limited to, actions relating to employment law and intellectual property, commercial or
contractual claims, brokerage or real estate disputes, or other consumer protection statutes, ordinary course brokerage disputes
like the failure to disclose property defects, commission disputes, and vicarious liability based upon conduct of individuals or
entities outside of the Company’s control, including agents and third-party contractor agents. Litigation and other disputes
are inherently unpredictable and subject to substantial uncertainties and unfavorable resolutions could occur.

The occurrence of an unfavorable outcome in any specific period could
have a material adverse effect on our results of operations for that period or future periods. Other than as described below, we are not
presently a party to any material pending or threatened legal proceedings.

As previously disclosed, on
February 13, 2023, Mr. Mark Gracy, who served as our Chief Operating Officer from November 18, 2021 to November 15, 2022, filed a civil
lawsuit in the Circuit Court of Osceola County, Florida, seeking a jury trial and claiming that the Company breached his employment agreement
by reducing his salary and failing to pay him his full severance payments and is looking for payment of his alleged severance of $249,000.
On April 11, 2023, the Company filed a motion to dismiss Mr. Gracy’s complaint, which is still pending.  

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As previously disclosed, on January 3, 2024, Ms. Sarah Palmer filed
a putative national class action complaint against La Rosa Realty, LLC in the United States District Court, Middle District of Florida,
Orlando Division. Ms. Palmer alleges that she received two (2) brief pre-recorded calls one week apart to her cell phone from La Rosa
Realty, LLC presenting her an employment opportunity as a real estate agent. Ms. Palmer seeks an undisclosed amount of monetary damages
from La Rosa Realty, LLC for the alleged would-be injurious, isolated and opportunistic employment gestures to her through a purported
nationwide class action. Ms. Palmer claims that the defendant violated her privacy, annoyed and harassed her, constituted a nuisance,
and occupied her telephone line. On March 12, 2024, La Rosa Realty, LLC filed a motion to dismiss the case with prejudice, which is