Mike Tyson and Ric Flair Launch $50 Million Lawsuit
Boxing legend Mike Tyson and wrestling icon Ric Flair are suing former business partners. They filed a federal lawsuit seeking $50 million. The suit alleges widespread fraud and financial misconduct. This significant legal action targets key figures from their cannabis ventures. The complaint was lodged in the U.S. District Court for the Northern District of Illinois.
Cannabis Ventures Under Scrutiny
The lawsuit centers on their popular cannabis brands. These include Tyson 2.0 and Ric Flair Drip. Carma HoldCo Inc. and LGNDS helped develop these products. They served as distributors for these celebrity-backed cannabis lines.
Serious Allegations Detailed
Plaintiffs claim a “brazen RICO conspiracy”. The suit details numerous alleged crimes. These include criminal wire fraud and embezzlement. Money laundering and extortion are also cited. Furthermore, securities fraud and self-dealing are core accusations. The defendants allegedly enriched themselves greatly. They are accused of obtaining tens of millions of dollars.
Key Defendants Identified
Four individuals are named defendants in the suit. Chad Bronstein is one former executive. He held roles as president and chairman. Adam Wilks also faces charges. He was the former CEO of Carma HoldCo. Nicole Cosby is another defendant. She formerly served as chief legal and licensing officer. Lastly, James Case is named as a shareholder. These former leaders allegedly abused their positions.
Pattern of Misconduct Alleged
The complaint outlines specific instances of wrongdoing. Bronstein, Wilks, and Cosby allegedly sold licensing rights illegally. These rights were not authorized for sale. Adam Wilks reportedly had a secret deal. He received concealed payments from vape company DomPen. This was allegedly for overlooking IP misuse.
Personal Enrichment Cited
Company funds were allegedly treated like a personal piggy bank. Over $1 million was reportedly spent on unauthorized personal expenses. These included private jet travel costs. Funds covered expenses for a personal yacht. Home renovations and mortgage payments were also covered. Lavish entertainment and unapproved bonuses are cited. Bronstein also allegedly bought a luxury watch for Sean McVay using company funds. This cost about $15,000.
A Major Sponsorship Dispute
Additionally, a large sponsorship deal is part of the claims. Bronstein allegedly entered a $1.5 million AEW deal. This was for Ric Flair’s Woo Energy drink. It reportedly occurred without board approval. Carma and LGNDS had to settle the $1.5 million with AEW. This happened even though they disputed the deal. Flair reportedly never agreed to the sponsorship terms. Bronstein also allegedly lied to Flair about ownership stakes.
Legal Ramifications and Responses
Tyson and Flair are seeking over $50 million in damages. They also want legal fees. A jury trial has been requested. However, the defendants strongly deny the allegations. Their attorneys called the lawsuit “fiction dressed up as a lawsuit”. One attorney stated the claims are “without substance”. They believe the suit is an attempt to intimidate and extort.
Industry Impact and News
This legal battle highlights significant risks. It impacts the fast-growing cannabis industry. Celebrity-backed brands face unique challenges. This case is now trending news within business and legal circles. Related legal disputes are not uncommon in this sector. The ongoing news surrounding this case will be closely watched.
Awaiting Courtroom Developments
The lawsuit promises a significant legal fight. It involves high-profile figures and serious financial accusations. Both sides are preparing for a major courtroom showdown. Further details are expected as the case progresses through the federal court system.
