Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 53

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 53
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 impact our financial condition and our real estate brokers and agents when those matters relate to business practices shared
by the Company, our real estate brokers and agents, or our industry at large. Such matters may include, without limitation, antitrust
and anticompetition, RESPA, Telephone Consumer Protection Act of 1991 and state consumer protection law, and worker classification claims.
Additionally, if plaintiffs or regulatory bodies are successful in such actions, this may increase the likelihood that similar claims
are made against the Company and/or our real estate brokers and agents which claims could result in significant liability and be adverse
to our financial results if we or our brokers and agents are unable to distinguish or defend our business practices.

28

As an example, in the matter
of Burnett v. National Association of Realtors (U.S. District Court for the Western District of Missouri), a federal jury found that the
NAR and certain other remaining brokerage defendants liable for $1.8 billion in damages on claims that these companies conspired to artificially
inflate brokerage commissions, which is in violation of federal antitrust law (the “Burnett Ruling”). The verdict was appealed
on October 31, 2023. Additionally, certain other brokerage defendants settled with the plaintiffs, including both monetary and non-monetary
settlement terms. That same day, the NAR, EXP World Holdings, Inc., Compass, Inc., Redfin Corporation, Weichert Realtors, United Real
Estate, Howard Hann Real Estate Services, and Douglas Elliman, Inc. were named as defendants in Gibson v. National Association of Realtors
(U.S. District Court for the Western District of Missouri), alleging a similar fact pattern and antitrust violations. On or about March
15, 2024, NAR agreed to settle the Burnett Ruling, along with a sister litigation, by agreeing to pay $418 million over approximately
four years, and changing certain of its rules surrounding agent commissions (the “Burnett Settlement”). On November 26, 2024,
the Burnett Settlement received its final approval. On March 22, 2024, real estate brokerage company Compass Inc. announced that it will
pay $57.5 million as part of a proposed settlement to resolve lawsuits over real estate commissions and agreed to change its business
practices to ensure clients can more easily understand how brokers and agents are compensated for their services.

While the Company was not
named as a defendant in any of these actions, it is possible that it could be a lit