WWE Hall of Famers Ric Flair and Mike Tyson have joined Carma and LGNDS in filing a federal lawsuit that accuses former executives of fraud, self-dealing, and financial misconduct connected to cannabis ventures bearing their brands. The 76-page complaint, filed in U.S. District Court in Illinois, alleges a broad RICO conspiracy involving financial abuse and unauthorized business dealings.
According to the filing, the plaintiffs allege more than 20 separate violations, including wire fraud, embezzlement, money laundering, extortion, securities fraud, and undisclosed self-enrichment. Named as defendants are former Carma executives Chad Bronstein, Adam Wilks, Nicole Cosby, and shareholder James Case. Wrestling fans may recognize Bronstein for his involvement with Hulk Hogan’s Real American Beer brand and the Real American Freestyle league currently airing on FOX Nation.
At the heart of the lawsuit are cannabis brands Tyson 2.0 and Ric Flair Drip, which use the likenesses and intellectual property of Tyson and Flair. The complaint claims that executives allegedly sold licensing rights they were not authorized to sell, entered into undisclosed kickback arrangements with vape company DomPen, and concealed payments in exchange for allowing unauthorized use of protected intellectual property.
According to PWInsider, the filing further alleges that Bronstein and Wilks treated Carma funds as personal assets, misappropriating more than $1 million for expenses including private jets, yachts, home renovations, mortgage payments, and luxury entertainment. These actions, the lawsuit claims, enriched the defendants while draining company resources.
One of the most striking allegations involves a sponsorship deal tied to All Elite Wrestling. The complaint claims Bronstein entered into a sponsorship agreement involving Flair’s Woo Energy Drink without informing Carma or LGNDS, allegedly to cultivate personal ties with the Khan family. The plaintiffs say they were only made aware of the agreement months later when they received notice that AEW expected payment of $1.5 million for fulfilling the contract. Despite disputing authorization, Carma and LGNDS reportedly paid the amount.
The lawsuit also alleges that Bronstein negotiated the sponsorship by falsely presenting himself as Flair’s representative, despite Flair never agreeing to the terms. This is particularly notable given Flair’s subsequent on-screen appearances for AEW while the sponsorship was being publicly promoted.
The complaint details how Flair’s relationship with Bronstein began after the two met while docked near each other in Tampa. According to the filing, Bronstein approached Flair about licensing his intellectual property, which led to the formation of Ric Flair Drip, Inc. The lawsuit claims Flair was unaware that he did not control the company and later did not receive proceeds when the entity was sold to Carma in 2022. Instead, the complaint alleges that Bronstein and Wilks restructured ownership in a way that increased their own equity while diminishing Flair’s stake.
After acquiring Ric Flair Drip, Carma allegedly began licensing Flair’s intellectual property across a wide range of products through LGNDS, generating hundreds of thousands of dollars – deals the plaintiffs say Flair did not approve and from which he did not benefit as entitled.
Attorneys representing the defendants have strongly rejected the allegations. In statements to Front Office Sports, defense counsel described the lawsuit as a work of fiction and characterized previous settlement demands as coercive. Wilks’ attorney specifically called the claims sensational and insisted both the facts and the law favor the defense.
The plaintiffs are seeking a jury trial, damages exceeding $50 million, and reimbursement of legal fees and costs. As of now, the defendants have not formally responded to the lawsuit in court.
