Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 28

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 28
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 laws, including the Sherman Antitrust Act, the Federal Trade Commission Act, the Clayton Act, and
other related federal, state, and provincial laws in the jurisdictions in which we operate. These laws prevent anti-competitive behaviors
such as price-fixing and other conduct that unreasonably restrains trade and competition. In 2021, the Department of Justice (“DOJ”)
withdrew its consent to a November 2020 proposed settlement with NAR concerning alleged anti-competitive practices in real estate. While
the DOJ dismissed its lawsuit against NAR in July 2021, it indicated a broader investigation into NAR’s activities. In November
2021, NAR modified its rules to implement most of the changes the DOJ settlement sought. In January 2023, a court set aside the DOJ’s
new investigative demand related to NAR. The indirect and direct effects, if any, of this action upon the real estate industry are not
yet clear.

While anti-competition enforcement
has intensified across industries, there is a unique focus on the real estate industry in the United States and Canada. For example, the
White House issued an Executive Order in July 2021 identifying real estate brokerages and listings as an area of focus. In 2018, a joint
workshop by the DOJ and FTC addressed potential competition issues in the residential real estate sector which could be the subject of
future enforcement actions.

During late 2023, lawsuits
were filed against the NAR and a number of large real estate brokers around the country alleging antitrust violations. We were not named
as a defendant in any antitrust litigation.

15

On March 15, 2024, the National
Association of REALTORS® announced an agreement that would end litigation of claims brought on behalf of home sellers related to broker
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. The settlement makes clear that NAR continues to deny any wrongdoing in connection with the
Multiple Listing Service cooperative compensation model rule (the MLS Model Rule) that was introduced in the 1990s in response to calls
from consumer protection advocates for buyer representation. Under the terms of the agreement, NAR would pay $418 million over approximately
four years