Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 156

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 2
Chunk 156
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. 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.

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. Discovery
is proceeding, mediation is scheduled for August 25, 2025. The Company denies the merits of the claims and intends on vigorously defending
the litigation.

As previously disclosed, on March 5, 2025, Joshua
Epstein filed an action in Osceola County, Florida Circuit Court alleging claims for Breach of Contract, Promissory Estoppel, Conversion,
Unjust Enrichment, Breach of Good Faith and Fair Dealings, Fraud in the Inducement, and to recover alleged unpaid compensation from the
defendant, La Rosa Holdings Corp. The Company strongly opposes and denies these claims.  Mediation is scheduled for September 5,
2025. The Company denies the merits of the claims and intend on vigorously defending the litigation.

On June 5, 2025, an employee, who
served as our Senior Human Resources and Payroll Specialist from July 10, 2024 to August 19, 2024, filed a civil lawsuit against the
Company in the Circuit Court of Osceola County, Florida. The employee is seeking a jury trial claiming $50,000 in damages and that the
Company terminated her employment in violation of SS 448.102(3). On July 9, 2025, the Company responded to the complaint with their Answer
and Affirmative Defenses, effectively denying all of the plaintiff’s claims. The case remains pending.  

The Company believes that the