What Happened:
Famous boxer Mike Tyson has filed a lawsuit against a Chicago-based marijuana company called Carma HoldCo. He claims the company and its former leaders cheated him out of millions of dollars. Wrestling legend Ric Flair joined Tyson in the lawsuit.
The lawsuit says the company’s former bosses stole money, spent company cash on personal things, and lied about business deals. Tyson is asking for more than $50 million to make up for what was lost.
Read the Original Court Filing:
- Front Office Sports: Full lawsuit details – Complete story with lawsuit information
What Tyson Says They Did Wrong:
According to the lawsuit filed on December 19, 2025, in federal court in Illinois, the former Carma executives:
- Spent over $1 million of company money on personal stuff like private jets, yachts, home renovations and expensive meals
- Demanded expensive gifts including $50,000 Rolex watches from business partners in exchange for contracts
- Sold rights they didn’t own to Tyson’s and Flair’s names and brands without permission
- Set up secret deals to get money under the table from other companies
- Gave themselves unauthorized bonuses worth hundreds of thousands of dollars
Who Is Being Sued:
The lawsuit names four people who used to work for Carma:
- Chad Bronstein (former President and Chairman)
- Adam Wilks (former CEO)
- Nicole Cosby (former Chief Legal Officer)
- James Case (shareholder)
What the Other Side Says:
The lawyers for the people being sued strongly deny these claims. They say the lawsuit is “fiction dressed up as a lawsuit” and that their clients did nothing wrong. They plan to fight the case in court.
About Tyson’s Marijuana Business:
Mike Tyson started his marijuana brand called “Tyson 2.0” in 2021. He partnered with Carma to create and sell cannabis products. Tyson has talked publicly about how marijuana has helped him with health problems since he retired from boxing.
Ric Flair had a similar deal with his brand called “Ric Flair Drip.”
Why This Matters:
This case is important because:
- It shows the risks of celebrity business partnerships
- It highlights problems that can happen in the marijuana industry
- It teaches people to be careful about business deals, even with big companies
What You Should Know About Celebrity Endorsements:
When celebrities put their names on products, there can be problems. The Federal Trade Commission (FTC) protects consumers from fake or misleading endorsements.
What Happens Next:
The case will go through federal court in Illinois. It could take months or even years to resolve. Both sides will present their evidence, and eventually a judge or jury will decide who is right.
The Bottom Line:
Even famous people like Mike Tyson can have problems with business partners. This lawsuit is a reminder to:
- Always read contracts carefully before signing
- Keep track of where company money goes
- Get everything in writing
- Don’t trust people just because they seem successful
- If something feels wrong, speak up or get help from a lawyer
If you’re thinking about investing in a celebrity-endorsed product or business, do your research first. Check reviews, look up the company online, and make sure the celebrity really is involved (and not just having their name used without permission).
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Learn More About Consumer Protection:
- FTC: Celebrity Endorsements and Reviews – Official government guide on how endorsements should work
- FTC: What to Know About Endorsements – Answers to common questions about celebrity endorsements
What To Do If You’ve Been Scammed:
If you think you’ve been cheated by a company using a celebrity’s name:
- Stop making any more payments to the company
- Report it to the FTC at ReportFraud.ftc.gov or call 1-877-382-4357
- Contact your bank to see if you can get your money back
- Warn others by leaving reviews online so other people don’t get scammed
- Consider talking to a lawyer if you lost a lot of money
Important Resources:
- Federal Trade Commission (FTC): The government agency that protects consumers from scams
- Website: consumer.ftc.gov
- Report fraud: ReportFraud.ftc.gov
- Phone: 1-877-382-4357
- Better Business Bureau: Check companies before doing business with them
- Website: bbb.org
