Tyson, Flair Sue Ex-Carama Executives for Fraud

Mike Tyson and Ric Flair, along with cannabis companies Carma and LGNDS, have filed a federal lawsuit in the U.S. District Court for the Northern District of Illinois, accusing former Carma executives of orchestrating a widespread fraud scheme that misused company funds and intellectual property tied to the celebrities' cannabis brands. The 76-page complaint, filed last week, includes 21 counts of alleged wrongdoing and seeks more than $50 million in damages, a jury trial, and reimbursement of legal fees.

The suit names Chad Bronstein, former president and chairman of Carma; Adam Wilks, former CEO; Nicole Cosby, former chief legal and licensing officer; and James Case, an individual shareholder, as defendants. It alleges a Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy involving wire fraud, embezzlement, money laundering, extortion, securities fraud, and self-dealing. According to the complaint, the executives enriched themselves by tens of millions of dollars through unauthorized actions related to the distribution of Tyson 2.0 and Ric Flair Drip cannabis products, which leverage the plaintiffs' names and likenesses.

Carma and LGNDS partnered to market...