Mike Tyson is back in a fight, but this one is playing out in a Chicago federal courtroom instead of a boxing ring. The former heavyweight champ and a group of co-plaintiffs have filed a sweeping lawsuit accusing Chicago-based cannabis branding company Carma HoldCo of defrauding them and draining their celebrity-backed weed brands of more than $50 million.
The complaint paints an unflattering picture of Carma’s inner workings, alleging kickback schemes, unauthorized bonuses and big-ticket personal spending that plaintiffs say bled the business dry. At stake are the fortunes of high-profile labels like Tyson 2.0 and Ric Flair Drip, and the case could become a cautionary tale for how celebrity licensing deals are structured and overseen.
According to court records obtained by ABC7 Chicago, the plaintiffs say the alleged conduct cost them "tens of millions of dollars." ABC7 reports that the filings describe a pattern of alleged self-dealing and concealed payments inside the company, accusations the defense flatly rejects.
What the suit alleges
As reported by Front Office Sports, a 76-page, 21-count complaint filed on Dec. 19 in U.S. District Court for the Northern District of Illinois names former Carma officials Chad Bronstein, Adam Wilks, and Nicole Cosby, along with shareholder James Case. The suit accuses them of orchestrating a RICO-style conspiracy involving alleged wire fraud, embezzlement, and money laundering, among other misconduct. The federal docket confirms the filing and shows the case was assigned in the Northern District of Illinois (Justia).
Specific examples in the complaint
Sources summarizing the filings, including The Source, say the complaint alleges more than $1 million in unauthorized personal expenses. Those claimed charges allegedly include private jet travel, yacht costs, home renovations, mortgage payments, and lavish entertainment, all booked to the business. The plaintiffs also point to what they describe as improper licensing arrangements and a concealed kickback deal tied to a vape manufacturer, and they are asking the court to hold the named individuals liable for the resulting losses.
Defendants push back
Attorneys for the defendants have come out swinging in response. Quoted by Front Office Sports, one lawyer blasted the complaint as "fiction dressed up as a lawsuit" and others characterized the claims as baseless. The legal team says their clients did nothing wrong and have pledged to contest the accusations in court.
Why it matters to the cannabis market
Carma built its business around a portfolio of star-powered brands that includes TYSON 2.0 and Ric Flair Drip. Mike Tyson was announced as Carma’s CEO earlier in 2025, a move the company pitched as a bold step to expand the reach of its lifestyle and cannabis lines (GlobeNewswire). The new lawsuit now hangs over those ambitions, potentially unsettling distribution and licensing deals and raising uncomfortable questions about governance and oversight at celebrity-led cannabis ventures.
Legal implications
The plaintiffs’ RICO claims invoke 18 U.S.C. § 1962. If those claims are ultimately proven, they could expose the defendants to civil remedies that include treble damages, costs and attorneys’ fees, a potent but legally demanding tool under federal law. Courts have emphasized that civil RICO requires proof of a pattern of qualifying predicate acts and proximate causation, with key explanations and precedent laid out in Sedima and related cases (FindLaw).
For now, the allegations remain just that: allegations. The defendants have vowed to defend themselves, the plaintiffs have requested a jury trial, and the court will set a schedule as motions and briefing start to roll in. ABC7 Chicago reports that no further details were immediately available.
