WWE icon Hulk Hogan’s alcohol brand, “Real American” beer, is at the center of a $10 million lawsuit involving a licensing company and two former employees.
Carma HoldCo Inc filed the lawsuit in Illinois and alleges that its former president, Chad Bronstein, chief legal and licensing officer Nicole Cosby, and their company, Rahm Inc, violated state and federal trade secret laws by using proprietary information and intellectual property belonging to Carma when they launched the wrestler-themed beer company.
The lawsuit claims that Cosby and Bronstein violated their employment agreements by misappropriating and making use of its proprietary information and its marketing tactics and concepts when developing Rahm Inc, according to Law360.
In other words, Carma is accusing its former executives of swiping its ideas and strategies and poaching Hogan away from them in order to launch their own beer using his name and likeness.
Carma frequently partners with celebrities to license their likenesses out to other companies, which are then used for a variety of products. It claims in the suit that it had entered into a deal with Hogan to be one of its brand ambassadors back in February 2023.
That summer, Bronstein — then an executive at Carma — discussed launching a beer brand using Hogan’s likeness. The original idea included using August and Billy Busch of the Busch family.
“Bronstein, as president and chairman of the board of directors, was intimately involved in and familiar with Carma’s plans for Hulk Hogan’s Real American brand beer,” the suit says. “During this time, Carma was in active discussions with August and Billy Busch, who controlled a trademark for the Real American Lager brand name, to form a joint venture in relation to Hulk Hogan’s Real American brand beer.”
The suit claims that Cosby was also familiar with the concept as part of her duties as CLO.
According to Carma, it hired a designer to create beer can concepts for The Real American brand that includes Hogan’s name and image as well as proposals for an All-American Lager and Patriot Pilsner. Those concepts were provided to Carma in September 2023. The company is arguing that the proposals, concepts, and business plans for the brand are confidential and proprietary.
Two months later, Carma says it terminated Cosby and Bronstein because the latter had allegedly arranged the deal in a way that would allow him to personally benefit by taking an ownership interest in the beer company. Cosby reportedly provided counsel to Bronstein and authorized the arrangement.
After the executives left, Carma said it tried to revitalize negotiations with Hogan and the Busch family for the beer idea, but claims the wrestler became uncooperative and stopped fulfilling his responsibilities as a brand ambassador per his deal with the company.
“Plaintiff is informed and believes, and based thereon alleges, that after their termination, Bronstein and Cosby continued to have their discussions with Hulk Hogan, his representatives, and August and Billy Busch concerning Hulk Hogan’s Real American brand beer, and they solicited Hulk Hogan to cease his relationship with Carma and enter a business relationship with Rahm to sell Hulk Hogan’s Real American brand beer,” the complaint says.
Rahm Inc applied for trademarks involving the “Real American Beer” name that covered a variety of products, including beer, non-alcoholic beer, coolers, mugs, and other related drinking paraphernalia.
The complaint accuses Rahm, Bronstein, and Cosby of breach of contract, violations of the Defend Trade Secrets Act, the Illinois Trade Secrets act, tortious interference with contractual relations and tortious interference with prospective business relations.
The company is seeking $348,000 in restitution for the breach of contract from Bronstein, and another $231,333.33 from Cosby. Carma is also seeking damages, restitution, royalties, and a court order to stop Bronstein and Cosby from using its trade secrets and to stop them from selling products they believe use stolen trade secrets.
