Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 108

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 8
Chunk 108
---
 of lease obligations 
    $811,395 

There were no leases with residual value guarantees.

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 misclassification, 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.

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. The case remains pending, discovery is proceeding and the
Company will be filing a summary judgment motion on Plaintiff’s claims.

16

La Rosa Holdings Corp. and Subsidiaries
Notes to the Unaudited Condensed Consolidated Financial Statements

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