Mike Tyson and Ric Flair have cleared an important hurdle in their lawsuit against former business associates connected to Carma HoldCo, the company behind TYSON 2.0 and Ric Flair Drip.
The lawsuit seeks more than $50 million, alleging that former executives and associates misused company funds, arranged unauthorized licensing agreements, and profited from transactions that benefited themselves rather than the business.
Fighting Words
The lawsuit was originally filed December 19ᵗʰ, 2025, in the U.S. District Court for the Northern District of Illinois.
The plaintiffs include Tyson, Flair, Carma HoldCo, TYSON 2.0 Inc., and LGNDS LLC.
The defendants are former Carma chairman Chad Bronstein, former CEO Adam Wilks, former executive Nicole Cosby, shareholder James Case, and Christopher Volo.
According to the allegations, company resources were diverted toward personal expenses, including private jets, yacht-related costs, and home renovations. The plaintiffs also allege that certain licensing arrangements were negotiated without appropriate authorization, including a disputed relationship involving vape manufacturer DomPen.
Tables, Ladders, and RICOs
The complaint invokes the federal Racketeer Influenced and Corrupt Organizations Act, commonly known as RICO, alleging a coordinated pattern of misconduct rather than a collection of unrelated business disputes.
The defendants sought dismissal of the amended complaint in May 2026, arguing that the allegations did not establish legally sufficient claims.
The latest ruling allows the case to proceed toward further litigation. It does not establish that the defendants committed fraud or that the plaintiffs are entitled to the damages requested.
Intercontinental Champs
While Tyson and Flair are now making headlines over the same lawsuit, their business relationship is hardly new.
The two brands have been marketed and manufactured together in multiple markets through Carma’s licensing model.
New Mexico offers a particularly clear example.
On March 5ᵗʰ, 2024, Carma HoldCo announced an exclusive partnership with Vitality Extracts, doing business as Elevated Labs, to introduce both TYSON 2.0 and Ric Flair Drip to the state’s regulated market.
In a 2024 Santa Fe New Mexican article, Elevated Labs CEO Orlando Watts explained at the time that Carma had approached the company because of its established retail relationships and manufacturing capabilities. Watts reported that Elevated products were already carried by approximately 60% of New Mexico retailers.
The partnership also gives a peek at how celebrity licensing works at the state level.
Tyson and Flair provide the names and IP. Carma coordinates the brands and licensing relationships. A locally licensed manufacturer handles production and helps bring the products to market.
Residual Checks
So, who actually controls the brand, the licensing agreements, and the money?
For manufacturers entering these partnerships, a recognizable name can provide immediate retail interest and distribution opportunities.
But the brand owner, licensing company, manufacturer, and distributor may all be separate entities.
That creates contractual dependencies involving intellectual property, royalty payments, exclusivity, production standards, and termination rights.
If ownership or management of a licensing company becomes disputed, local operators need to know whether their agreements remain enforceable and who has authority to approve production or distribution.
Something to consider before taking on a licensing deal for operators of all sizes.
