A licensing company filed a complaint against two former executives for allegedly violating trade secret laws in a scheme to poach wrestler Hulk Hogan and launch a branded beer.
BloombergLaw reported that Carma HoldCo claimed its former president, Chad Bronstein, and former chief legal and licensing officer, Nicole Cosby, stole a concept for a Hulk Hogan-branded beer called "Real American" while creating a new company called Rahm Inc.
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The complaint, filed in the U.S. District Court for the Northern District of Illinois, also alleged that Bronstein and Cosby violated their separation agreements.
Carma collaborates with celebrities to license their likeness for use in branded products. Notable projects include wrestler Ric Flair’s Wooooo Energy Drinks and boxer Mike Tyson’s Tyson 2.0 cannabis company.
According to Carma, the company partnered with Hogan, born Terry Bollea, in 2023 to serve as a brand ambassador for "Real American" beer, referencing one of Hogan’s theme songs. The Independent reported that the original concept included launching a joint venture with Billy and August Busch of the Busch family, who owned rights to the Real American Lager trademark.
The complaint stated that Carma fired Bronstein after it discovered that he designed the agreement to secure an ownership share in the venture. The company also fired Cosby for “authorizing” the arrangements.
BloombergLaw reported that, following the terminations, Hogan allegedly cut off communication with Carma and failed to fulfill his responsibilities as brand ambassador, leading to a breakdown in the relationship that eventually ended.
The complaint said Bronstein and Cosby encouraged Hogan to end his partnership with Carma and join them at Rahm to sell Real American Beer, which launched last year.
Carma claimed it endured at least $10 million in damages as a result of the alleged violations. The Independent reported that the company will seek $348,000 from Bronstein and more than $231,000 from Cosby, as well as royalties and a court order to prevent the use of its trade secrets and the sale of any products tied to the alleged stolen information.
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