Mike Tyson and Ric Flair just got the green light to keep fighting in court. A federal judge shot down an attempt to throw out their $50 million cannabis fraud lawsuit, which means the racketeering claims against five former business associates stay alive. For two legends who put their names on a business, this is a big early win.
The Breakdown
The ruling lets the case move forward, AllHipHop reported, citing TMZ Sports. The defendants are Chad Bronstein, Adam Wilks, Nicole Cosby, James Case and Christopher Volo. All five have denied wrongdoing in the fight over Carma HoldCo and the cannabis businesses tied to Tyson and Flair.
The lawsuit was filed in December 2025 and is pending in the U.S. District Court for the Northern District of Illinois. Carma, hemp company LGNDS LLC and Tyson 2.0 are also plaintiffs.
What the Lawsuit Claims
Carma’s business included the Tyson 2.0 and Ric Flair Drip brands, so it had two of the biggest names in boxing and wrestling to sell its products. The plaintiffs say former leaders and associates used that setup to line their own pockets. Again, these are allegations, and the defendants deny them.
- More than $1 million in company funds allegedly spent on personal items, including private jets, yacht costs and home renovations.
- Unauthorized licensing deals and hidden kickbacks.
- A deal that allegedly gave vape manufacturer DomPen access to Carma’s intellectual property in a way that benefited Wilks.
- No show jobs.
- Efforts to inflate Carma’s value on paper.
The plaintiffs filed under the federal Racketeer Influenced and Corrupt Organizations Act. Their argument is that these were not random incidents but connected parts of one scheme inside the company.
The Motion That Failed
The five defendants filed a joint motion to dismiss in May, after the plaintiffs revised the lawsuit. They argued the second amended complaint did not state a valid claim and asked the court to end things before they went any deeper.
The judge did not buy it. That does not mean Tyson and Flair have proven anything yet. It means the court decided the claims are worth hearing.
What’s Next
Tyson and Flair are asking for a jury trial and more than $50 million in damages and legal fees. A Tyson 2.0 representative made clear the camp is ready for that.
“The Court’s decision allows the litigation to move forward, and we welcome that opportunity.”
Now the case moves ahead with the defendants still denying everything. We will be watching to see how the racketeering claims hold up as things get deeper.
The Takeaway
Putting your name on a business means trusting the people running it, and Tyson and Flair say that trust got burned. A judge just said their story deserves a real hearing, and that is a long way from where the defendants wanted this to end.