Judge Keeps Tyson, Flair RICO Suit Alive
A federal judge in Illinois declined to dismiss the racketeering lawsuit brought by Mike Tyson and Ric Flair against five people tied to Carma/Tyson 2.0.
Updated on Nov. 7, 2026 in Boxing
A federal judge in Illinois refused to dismiss the RICO lawsuit filed by Mike Tyson and Ric Flair against five people tied to Carma/Tyson 2.0, allowing the case to proceed. The defendants had jointly moved to dismiss the suit.
Why it matters
The ruling clears the way for discovery in a lawsuit in which Tyson and Flair allege financial misconduct at the company and are seeking tens of millions of dollars. It keeps the allegations of misappropriated corporate funds before the court.
The lawsuit alleges more than $1 million was siphoned from Carma, and Tyson and Flair are seeking tens of millions of dollars. Whether the defendants will be held liable for the alleged funds has not yet been determined.
The players
Mike Tyson
Mike Tyson is a former heavyweight boxing champion and one of the most famous athletes in the world.
Ric Flair
Ric Flair is a retired professional wrestler and former world champion, widely known for his career in the WWE and other promotions.
The details
Tyson and Flair claim two Carma executives treated the company as a personal piggy bank, using alleged siphoned funds for private jet travel, a yacht and home renovations. They further allege other defendants received kickbacks on deals negotiated without their knowledge.
Timeline
December: Tyson and Flair filed the RICO lawsuit.
November 6, 2026: The Illinois federal judge refused to dismiss the case.
The Tech Race
Racketeering claims have increasingly been used by celebrity founders against partners in branded ventures, and this ruling lets such a claim proceed past the pleading stage. The case is a test of whether allegations of corporate misuse can sustain a RICO claim.
The case will move into discovery, where the defendants may be required to produce financial records related to Carma. Its outcome could affect how the Carma/Tyson 2.0 business relationships are unwound.
The takeaway
Celebrity-branded ventures can carry serious legal exposure when partners allege misuse of company funds. Anyone entering a similar deal should document how money moves and who approves it.
Further reading
Follow the latest Boxing developments as this case moves through federal court.
