Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 220

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 220
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 the standard practices of commission-sharing between listing agents and buyer’s agents
and may adversely affect our business model and revenues. On October 31, 2023, a federal jury in Missouri found that NAR and certain
companies conspired to artificially inflate brokerage commissions, which violates federal antitrust law. The judgment was appealed on
October 31, 2023, while these and other plaintiffs have filed similar lawsuits against a number of other large real estate brokerage
companies. We have not, as of the date hereof, been named as a defendant in any antitrust litigation. On or about March 15, 2024, NAR
agreed to settle these lawsuits, by agreeing to pay $418 million over approximately four years, and changing certain of its rules surrounding
agent commissions. This settlement resolves claims against NAR and nearly every NAR member; all state, territorial and local REALTOR®
associations; all association-owned MLSs; and all brokerages with an NAR member as principal whose residential transaction volume in
2022 was $2 billion or below and is subject to court approval. Due to this litigation, there will be rule changes for the NAR. In the
settlement, effective mid-July 2024, NAR has agreed to put in place a new rule prohibiting offers of compensation on the MLS, as well
as adopt new rules requiring written agreements between buyers and buyers’ agents. However, the direct and indirect effects, if
any, of the judgment upon the real estate industry are not yet entirely clear.

There
could also be further changes in real estate industry practices. All of this has prompted discussion of changes to rules established
by local or state real estate boards or multiple listing services. All of this may require changes to many brokers’ business models,
including changes in agent and broker compensation. For example, we will likely have to develop mechanisms and a plan that enable buyers
and sellers to negotiate commissions. The Company will continue to monitor ongoing and similar antitrust litigation against our competitors.
However, the litigation and its ramifications could cause unforeseen turmoil in our industry, the impacts of which could have a negative
effect on us as an industry participant.

Cybersecurity

Our
business faces cybersecurity risks that could have a material adverse effect on our business operations, financial condition, and reputation.
Key factors contributing to cybersecurity risks include, but are not limited to:

●Constantly
Evolving Threat Landscape: The landscape of cybersecurity threats is constantly evolving, with new