A federal court filing claims former partners profited off their names through disputed cannabis licensing deals.
Mike Tyson and Ric Flair are accusing former business partners of defrauding them in a high-stakes cannabis branding venture, according to allegations laid out in a federal lawsuit filed last month in Illinois.
The 76-page complaint, submitted Dec. 19 in U.S. District Court for the Northern District of Illinois, alleges that four former executives and shareholders of Carma HoldCo engaged in a wide-ranging scheme involving fraud, self-dealing and misuse of celebrity likenesses. The plaintiffs are seeking damages, legal fees and costs in excess of $50 million.
The defendants named in the lawsuit have not yet filed responses, and the allegations have not been tested in court.
A celebrity cannabis push that allegedly went sideways
According to the complaint, Carma was formed in 2021 as a global branding company focused on licensing celebrity names and intellectual property across cannabis, hemp and related consumer products. Tyson and Flair entered into licensing arrangements that allowed Carma to commercialize their names and likenesses through third-party deals.
The lawsuit alleges that instead of building sustainable brands, certain executives treated the company as a vehicle for personal enrichment. Among the claims: unauthorized licensing deals, undisclosed side agreements and personal benefits extracted from partners as conditions of doing business.
Plaintiffs say these practices resulted in financial losses to the company and its celebrity partners while enriching a small group of insiders.
Allegations of self-dealing and personal enrichment
The complaint lays out detailed allegations that former executives used company funds for personal expenses, including luxury travel, private aircraft, yacht-related costs, home renovations and personal mortgage payments. It further alleges that bonuses were approved and paid without proper authorization, exceeding contractual limits.
The lawsuit also describes what it characterizes as coercive behavior toward business partners, …
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Author: High Times / High Times
