WWE Celebrity Hall of Famer Mike Tyson and WWE Hall of Famer Ric Flair are among the plaintiffs in a sweeping federal lawsuit that accuses former executives of cannabis company Carma of an extensive RICO conspiracy involving fraud, embezzlement, and self-dealing.
The 76-page lawsuit was filed in the U.S. District Court for the Northern District of Illinois by Tyson, Flair, and cannabis companies Carma and LGNDS. It alleges 21 counts of wrongdoing against former Carma executives Chad Bronstein, Adam Wilks, Nicole Cosby, and James Case. The complaint claims the defendants enriched themselves by tens of millions of dollars through wire fraud, money laundering, extortion, securities fraud, and unauthorized licensing deals.
Pro wrestling fans may recognize Bronstein as the figure behind Hulk Hogan’s Real American Beer and the Real American Freestyle league currently streaming on FOX Nation.
Carma and LGNDS jointly distribute the cannabis brands Tyson 2.0 and Ric Flair Drip, which use Tyson’s and Flair’s names and likenesses. According to the lawsuit, the defendants allegedly sold licensing rights they were not authorized to sell, entered into undisclosed kickback arrangements with vape company DomPen, and allowed the use of intellectual property without proper approval.
The lawsuit further alleges that Bronstein and Wilks treated Carma as a “personal piggy bank,” misusing more than $1 million in company funds for private jets, yachts, home renovations, mortgage payments, and luxury entertainment.
A major portion of the complaint centers on an alleged sponsorship deal involving Ric Flair’s Woo Energy Drink and All Elite Wrestling. The lawsuit claims Bronstein entered into the AEW agreement without company authorization and did not disclose it until Carma and LGNDS were threatened with a $1.5 million lawsuit from AEW. Despite disputing the legitimacy of the deal, the companies ultimately paid the $1.5 million. The complaint also alleges Bronstein falsely presented himself as Flair’s agent during negotiations, and that Flair never agreed to the sponsorship terms.
Flair did make multiple appearances on AEW programming while the sponsorship was being promoted.
The lawsuit also details the origins of Ric Flair Drip, alleging Bronstein approached Flair after meeting him at a marina in Tampa and proposed licensing Flair’s intellectual property. Flair Drip, Inc. was later created, but the lawsuit claims Flair was unaware he was not the majority owner. When the company was sold to Carma in 2022, Flair allegedly did not receive proceeds from the transaction and was later “shorted” equity he was entitled to, while Bronstein and Wilks allegedly increased their own ownership stakes without disclosure or board approval.
After Carma acquired Ric Flair Drip, the lawsuit alleges Bronstein sold Flair’s IP rights to LGNDS for approximately $400,000, authorizing a wide range of products without Flair’s proper consent.
Attorneys for the defendants strongly denied the allegations in comments to Front Office Sports, calling the lawsuit “fiction dressed up as a lawsuit” and labeling prior settlement demands as coercive. Wilks’ attorney described the claims as baseless and sensational.
The plaintiffs are seeking a jury trial, more than $50 million in damages, and reimbursement of legal fees and costs. As of now, the defendants have not formally responded to the lawsuit in court.
