{"url_path":"/sec/lrhc/10-k/2026/item-3","section_key":"item-3","section_title":"Item 3 Legal Proceedings.**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-04","source_url":"https://www.sec.gov/Archives/edgar/data/1879403/0001213900-26-065276-index.html","accession_number":"0001213900-26-065276","cik":"0001879403","ticker":"LRHC","issuer_name":"La Rosa Holdings Corp.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1879403/0001213900-26-065276-index.html","primary_entity_key":"0001879403","primary_entity_name":"La Rosa Holdings Corp."},"word_count":866,"has_tables":true,"body_markdown":"**Item\n3. Legal Proceedings.**\n\n \n\nFrom\ntime to time the Company is involved in litigation, claims, and other proceedings arising in the ordinary course of business. Such litigation\nand other proceedings may include, but are not limited to, actions relating to employment law and intellectual property, commercial or\ncontractual claims, brokerage or real estate disputes, or other consumer protection statutes, ordinary course brokerage disputes like\nthe failure to disclose property defects, commission disputes, and vicarious liability based upon conduct of individuals or entities\noutside of the Company’s control, including agents and third-party contractor agents. Litigation and other disputes are inherently\nunpredictable and subject to substantial uncertainties and unfavorable resolutions could occur.\n\n \n\nOn\nFebruary 13, 2023, Mr. Mark Gracy, who served as our Chief Operating Officer from November 18, 2021 to November 15, 2022, filed a civil\nlawsuit in the Circuit Court of Osceola County, Florida, seeking a jury trial and claiming that the Company breached his employment agreement\nby reducing his salary and failing to pay him his full severance payments and is looking for payment of his alleged severance of $249,000.\nOriginal mediation was scheduled for August 25, 2025, with a second mediation set for April 28, 2026. Discovery is proceeding and the\ntrial is set for October 2026. The Company denies the merits of the claims and intends on vigorously defending the litigation.\n\n \n\nOn\nMarch 5, 2025, Joshua Epstein, our former employee and Chief Strategy Officer, filed a civil lawsuit in Osceola County, Florida Circuit\nCourt alleging claims for breach of contract, promissory estoppel, conversion, unjust enrichment, breach of good faith and fair dealings,\nfraud in the inducement, and to recover alleged unpaid compensation in the amount of $100,000 from the Company. The Company strongly\nopposed and denied these claims. Original partial mediation occurred on September 5, 2025. A second mediation is expected to be set in\nthe near future. The case trial is scheduled for April 2027. The Company denies the merits of the claims and intends on vigorously defending\nthe litigation.\n\n \n\nOn\nJune 5, 2025, an employee, who served as our Senior Human Resources and Payroll Specialist from July 10, 2024 to August 19, 2024, filed\na civil lawsuit against the Company in the Circuit Court of Osceola County, Florida. The employee is seeking a jury trial claiming $50,000\nin damages and that the Company terminated her employment in violation of SS 448.102(3). On July 9, 2025, the Company responded to the\ncomplaint with its answer and affirmative defenses, effectively denying all of the plaintiff’s claims. In March of 2026 discovery\nand depositions began. The case remains pending.\n\n \n\nOn\nJanuary 13, 2026, Martin Scott CFO Consulting Services, Inc. filed a civil lawsuit against the Company and La Rosa Realty, LLC, in the\nCircuit Court of Palm Beach County for breach of contract, open account, account stated, and unjust enrichment. The plaintiff stated\nthat he had a contract with the defendants and is owed unpaid fees of approximately $29,000 and legal expenses. The Company settled this\nlawsuit on April 20, 2026 for the amount of $22,000.\n\n \n\nOn\nJanuary 30, 2026, the Company and La Rosa Realty Orlando LLC filed a civil lawsuit against Reinaldo Zapata and Viviana Figueroa in the\nCircuit Court of Orange County. The case involved an action for dissolution of La Rosa Realty Orlando LLC, action for conversion against\nReinaldo Zapata, and an action for damage for breach of employment agreement against Reinaldo Zapata. The case was settled on April 4,\n2026 as previously disclosed in the Company’s Current Report on Form 8-K filed with the SEC on April 6, 2026.\n\n \n\nOn February 1, 2026, Stacy-Ann Blair and Delroxry Blair filed a civil\nlawsuit against La Rosa Realty CW Properties, et. al. in the Circuit Court of Orange County, Florida, stating that La Rosa CW Properties\nfailed to disclose a family relationship with one or more of its sellers, creating a material conflict of interest. The plaintiffs claim\nbreach of contract, unjust enrichment, fraudulent and negligent misrepresentation, and civil theft and seeking damages of approximately\n$9,600. The Company filed a motion to dismiss, which was further amended. A case management conference is being scheduled for July-August\n2026 and the mediation is set for July 2026. The Company denies the merits of the claims and intends on vigorously defending the litigation.\n\n \n\nThe occurrence of an unfavorable\noutcome in any specific period could have a material adverse effect on our results of operations for that period or future periods. Other\nthan as described above, we are not presently a party to any material pending or threatened legal proceedings.\n\n \n\nThe\nCompany believes that the above claims are without merit, and it will vigorously defend against such claims. Moreover, these claims,\nin the aggregate, would not have a material adverse effect on the Company’s financial condition, business, or results of operations,\nshould the Company’s defense not be successful in whole or in part. Except as stated herein, there is no other action, suit, proceeding,\ninquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to\nthe knowledge of our executive officers, threatened against or affecting our Company or our officers or directors in their capacities\nas such."}