Mike Tyson & Ric Flair Keep $50M Cannabis Lawsuit Alive

Mike Tyson and Ric Flair can keep pursuing their $50 million cannabis fraud lawsuit after a federal judge rejected an effort to throw out the case against five former business associates.

The ruling allows their federal racketeering claims to move forward, TMZ Sports reported. The defendants, Chad Bronstein, Adam Wilks, Nicole Cosby, James Case and Christopher Volo, have all denied wrongdoing in the dispute over Carma HoldCo and the cannabis businesses tied to the two stars.

Tyson and Flair filed the lawsuit in December 2025, accusing former Carma leaders and associates of enriching themselves through company money and deals made without approval. Carma, hemp company LGNDS LLC and Tyson 2.0 are also plaintiffs in the case, which is pending in the U.S. District Court for the Northern District of Illinois.

Carma’s business included the Tyson 2.0 and Ric Flair Drip brands, giving the company two famous names from boxing and wrestling to market its cannabis products. The lawsuit alleged that former executives used more than $1 million in company funds for personal expenses, including private jets, yacht costs and home renovations.

The plaintiffs also accused former executives of arranging unauthorized licensing deals and collecting hidden kickbacks. One alleged arrangement involved vape manufacturer DomPen, which the lawsuit claimed received access to Carma’s intellectual property through a deal that benefited Wilks.

Other allegations concern no-show jobs and efforts to inflate Carma’s value on paper. The plaintiffs brought those claims under the federal Racketeer Influenced and Corrupt Organizations Act, arguing that the transactions were connected parts of a scheme inside the business.

The five defendants filed their joint dismissal motion in May after the plaintiffs revised the lawsuit. They argued that the second amended complaint failed to state a valid claim and asked the court to end the case before it went further.

AllHipHop covered the dispute when it first became public, including the defendants’ rejection of the allegations. Tyson and Flair sought a jury trial and more than $50 million in damages and legal fees.

“The Court’s decision allows the litigation to move forward, and we welcome that opportunity,” a Tyson 2.0 representative said.