Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 312

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 312
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 against us, and adverse results may harm our business and financial condition.

The real estate industry often
involves litigation, ranging from individual lawsuits by brokerage clients, sales associates, employees and franchisees to large class
actions and government investigations. We often are involved in various lawsuits and legal proceedings that arise in the ordinary course
of business. Such litigation and other proceedings have included, and may in the future include, but are not limited to, actions relating
to breach of contract, employment matters, sales agent commissions, intellectual property, commercial arrangements, negligence and fiduciary
duty claims arising from our brokerage operations, fraud or failure to disclose matters in our franchise documents or agreements, standard
brokerage disputes like the failure to disclose hidden defects in a property such as mold, vicarious liability based upon the conduct
of individuals or entities outside of our control, including our agents, third-party service or product providers, antitrust claims, general
fraud claims, employment law claims, including claims challenging the classification of our agents as independent contractors and compliance
with wage and hour regulations, and claims alleging violations of the Real Estate Settlement Procedures Act or state consumer fraud statutes.

Each lawsuit filed against
or by us has factors that are unpredictable, including but not limited to, legal fees, insurance coverage, or the ultimate outcome of
litigation and remedies or damage awards. Adverse results in such litigation and other proceedings may harm our business, our brands and
our financial condition.

We have general liability
and an errors and omissions insurance policy to help protect us against claims of inadequate work or negligent action. This insurance
might not continue to be available to us on commercially reasonable terms or at all, or a claim otherwise covered by our insurance may
exceed our coverage limits, or a claim might not be covered at all. We may be subject to errors or omissions claims that could have an
adverse effect on us. Moreover, defending a suit, regardless of its merits, could entail substantial expense and require the time and
attention of our senior management. Substantial financial judgments against us would have a material adverse effect on our business, brands,
results of operations, financial condition and prospects.

Adverse outcomes in
litigation and regulatory actions against the NAR, other real estate brokerage companies and agents in our industry could adversely impact
our financial results.

Adverse outcomes in legal
and regulatory actions against the NAR, other companies, brokers, and agents in the residential and commercial real estate industry may
adversely