In a 76-page lawsuit filed last week in U.S. District Court in Illinois, Tyson and Flair—along with cannabis companies Carma and LGNDS—allege that four defendants engaged in fraud, breach of contract, and racketeering activity. The suit names Chad Bronstein, Adam Wilks, Nicole Cosby, and shareholder James Case.
According to the complaint, the defendants were involved in what it describes as a “brazen RICO conspiracy,” accusing them of wire fraud, embezzlement, money laundering, securities fraud, and self-dealing that allegedly cost the companies tens of millions of dollars.
Bronstein, Wilks, and Cosby previously held top leadership roles at Carma, serving as president and chairman, CEO, and chief legal and licensing officer. Carma and LGNDS work together to market and distribute cannabis brands tied to Tyson and Flair, including Tyson 2.0 and Ric Flair Drip.
Claims of Unauthorized Deals and Kickbacks
One of the central allegations is that Carma executives sold licensing rights they were not allowed to sell under agreements with Tyson and Flair. The lawsuit also claims Wilks had a secret kickback arrangement with vape manufacturer DomPen, allegedly receiving hidden payments while ignoring the company’s unauthorized use of Carma’s intellectual property.
The filing further alleges that Carma funds were used as a personal “piggy bank” by executives. The suit claims more than $1 million was spent on private jet travel, yacht expenses, home renovations, mortgage payments, lavish meals, and unapproved bonuses.
Defendants Push Back
Attorneys for the defendants strongly deny the allegations.
Jonathan Cyrluk, who represents Bronstein and Cosby, called the lawsuit “fiction dressed up as a lawsuit” in a statement to Front Office Sports. He claimed the plaintiffs tried to pressure his clients into settling before filing suit and said they are prepared to fight the case in court.
Wilks’ attorney, Terry Campbell, echoed that stance, calling the allegations “without substance” and accusing the plaintiffs of trying to generate headlines to force a payout.
More Than $50 Million at Stake
The lawsuit seeks a jury trial and more than $50 million in damages, along with legal fees and other costs.
Bronstein is currently an executive at Real American Freestyle, a wrestling promotion formed in partnership with late WWE star Hulk Hogan, which has a distribution deal with Fox Nation.
This is not the first legal battle between the parties. Carma sued Bronstein and Cosby earlier this year, accusing them of misusing confidential information tied to a beer project connected to Hogan’s Real American Beer brand. That case is still pending.
As the legal fight unfolds, the lawsuit adds another high-profile clash to the fast-growing—and increasingly litigious—celebrity cannabis industry.
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