Mike Tyson and Ric Flair File $50 Million Fraud Lawsuit Over Cannabis Brand Disputes

Boxing legend Mike Tyson and wrestling icon Ric Flair have filed a federal lawsuit alleging they were victims of a sweeping fraud scheme by former partners in their celebrity cannabis brands. The complaint, lodged in Illinois federal court on December 19, accuses four former executives and shareholders of Carma, a Chicago-based branding company, of using the company as a "personal piggy bank" and orchestrating unauthorized deals using the celebrities' likenesses. The lawsuit seeks damages and legal costs exceeding $50 million, and could potentially expose questionable investor practices during the cannabis industry's post-boom period

According to the detailed 76-page complaint, the accused parties—Chad Bronstein, Adam Wilks, Nicole Cosby, and James Case—allegedly committed 21 counts of fraud and breach of contract. The suit claims these individuals engaged in activities such as criminal wire fraud, embezzlement, and money laundering, as well as making side deals with vape manufacturers and cannabis cultivators without proper authorization. "This complaint is pure fiction dressed up as a lawsuit," said Jonathan Cyrluk, attorney for Bronstein and Cosby, denying all allegations and vowing to fight back in court

The lawsuit also highlights the tangled business relationships within the cannabis sector, alleging that defendants improperly sold shares, misrepresented company valuations, and solicited lavish personal gifts from partners. Bronstein is accused of tricking Flair into signing away his intellectual property and then selling a significant portion of Ric Flair Drip Inc. to Carma while excluding Flair from the deal. The complaint further alleges that the defendants awarded themselves excessive salaries and bonuses at the expense of the company and its celebrity partners

A particularly complex aspect involves former Carma CEO Adam Wilks, who also served as CEO of Captor Capital, an investor in Northern Emeralds and DomPen. The suit contends that a deal with Northern Emeralds to produce Tyson 2.0-branded cannabis products resulted in over $1.25 million in unpaid royalties to Carma, and that Wilks personally benefited by waiving payments in exchange for equity. The legal action also implicates unauthorized sublicensing and sponsorships, including with the Cleveland Cavaliers NBA franchise, deepening concerns over transparency in celebrity cannabis branding

While the lawsuit primarily features Tyson and Flair as plaintiffs, it also references Miami-based LGNDS, which acquired rights to Tyson's likeness for a wide range of products, and musician Future, whose likeness was allegedly sold without consent. Although Future is not a plaintiff, the breadth of the allegations underscores the risks celebrities face in the rapidly evolving cannabis industry. Defendant attorneys have dismissed the suit as a "shakedown" and "without substance," insisting their clients acted legally and ethically

From the OG Lab newsroom perspective, this high-profile legal battle highlights ongoing challenges in the celebrity cannabis market, where branding deals can quickly become mired in disputes over intellectual property, transparency, and compensation. As the cannabis industry matures, the outcome of this lawsuit could set important precedents for contract enforcement and ethical business practices involving celebrity endorsements. Industry stakeholders will be closely watching the court's handling of these allegations and their potential impact on future branding partnerships