Miami-based “global hemp” company is the plaintiff in a case alleging conspiracy to commit criminal wire fraud, money laundering and embezzlement against four cannabis executives.
LGNDS has joined Mike Tyson (ex-boxer) and Ric Flaair (professional wrestler), in filing a lawsuit against former business associates over celebrity cannabis brand ventures. The companies claim that they have been defrauded, as well as having their revenues cut. Tyson, Flair and their companies, which used the names and images of these celebrities to promote marijuana and hemp-based products, filed a complaint in U.S. District Court, Illinois, on December 19, 2025. Carma, the Chicago-based company responsible for their cannabis brand, is also a plaintiff.
Former Carma shareholders and executives are named as defendants in the lawsuit.
• Chad Bronstein, former chairman and president of Carma;
• Adam Wilks, former chief executive officer;
• Nicole Cosby, former board member and chief legal and licensing officer; and
• James Case, a Carma shareholder.
The lawsuit claims that they have defrauded the celebrities and treated LGNDS like “their personal piggy bank.”
LGNDS is a key player
LGNDS bought the rights to Tyson’s image on products such as hemp, mushrooms and nicotine products. They also purchased merchandise, including apparel and shoes.
LGNDS’ involvement in the celebrity branding was primarily to assist with the launch of an ecommerce platform that offered global shipping and three “hemp derived verticals”, namely delta-8 THC hemp-derived delta-9THC and CBD. LGNDS was billed as the “world’s leading hemp company”, with “global presence” and innovation of hemp-derived cannabinoids, in announcements around that time.
Alleged misbehaviour
The complaint goes beyond general fraud claims to detail a pattern of self-dealing in the way sponsorships and licensing rights were approved. The filing states that the defendants engaged in multiple promotional and sublicensing agreements without the proper approval, and used Tyson’s name and Flair’s intellectual property for marketing cannabis and hemp outside of the licensing framework.
In addition, the lawsuit alleges that the defendants misrepresented Carma’s value to investors and sold personal shares at a profit. They also claim they diverted money through business partner non-cash incentives rather than route licensing fees through Carma. In addition, it is alleged that Carma acquired control over a separate business entity created for the purpose of commercializing Ric Flair’s image without Flair consent.
In the filing, the defendants are also accused of giving themselves bonuses and excessive compensations. This reduces funds that can be made available for celebrity partners or other stakeholders.
Northern California ties
This complaint brings up conflict of interest concerns relating to Carma’s relationships in cannabis distribution and production. One defendant is accused of holding senior roles both at Carma and an investment firm which has interests in Northern Californian cannabis producers who produce Tyson-branded items.
A 2022 deal required one operator to produce and market Tyson brand cannabis flower and prerolls for royalties. According to the suit, payments made under that agreement were not as expected, obligations were waived and personal equity was traded in return for those waivers, leaving Carma unable to pay loans.