Tyson and Ric Flair Say Former Partners Ripped Them Off — Now They’re in Court

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, including demands for expensive luxury watches and equity stakes unrelated to licensing agreements, allegedly imposed as conditions for maintaining deals.

These allegations are presented as part of a broader claim, outlined in the complaint, that the defendants operated an “association-in-fact enterprise” designed to extract value from investors, celebrities and brand partners rather than build long-term businesses.

Ric Flair IP dispute at the center of the case

One of the most detailed sections of the complaint focuses on the handling of Flair’s intellectual property. The lawsuit alleges that a separate entity was created to house Flair-related branding, and that he was unknowingly assigned a minority ownership position in a company holding rights he previously controlled outright.

According to the filing, that entity was later sold to Carma through transactions that allegedly increased the equity positions of certain executives while leaving Flair without proceeds he says he was entitled to receive.

Northern California cannabis ties and alleged conflicts

The lawsuit also describes alleged conflicts of interest involving cannabis operators in Northern California, including Northern Emeralds. Plaintiffs allege that an executive simultaneously held leadership roles on both sides of licensing deals, waived more than $1.25 million in royalty payments and converted company obligations into personal equity stakes without disclosure to Carma’s board.

If proven, those claims would represent significant breaches of fiduciary duty.

Unauthorized licensing beyond cannabis

Beyond cannabis flower and pre-rolls, the complaint alleges that licensing agreements extended into categories not contractually authorized, including nicotine vapes, mushroom products, gambling applications and retail ventures. In some cases, the lawsuit claims Tyson’s name was used in sublicenses that promised personal appearances he had not approved.

The filing also raises regulatory concerns, alleging that certain licensed nicotine products failed to comply with FDA requirements, potentially exposing the Tyson brand to reputational and legal risk.

A broader reckoning for celebrity cannabis brands

While the case centers on specific defendants and deals, the lawsuit paints a larger picture of how celebrity cannabis branding operated during the industry’s boom years. According to the complaint, rapid expansion, opaque licensing structures and weak oversight created conditions where value could be extracted quickly, often at the expense of the celebrities whose names powered the brands.

Whether those allegations are ultimately upheld will be decided in court. For now, the lawsuit offers one of the most detailed looks yet at the risks embedded in celebrity-driven cannabis ventures.

The defendants named in the case have not yet responded publicly, and the matter remains ongoing.

<p>The post Tyson and Ric Flair Say Former Partners Ripped Them Off — Now They’re in Court first appeared on High Times.</p>