Hulk Hogan's beer brand faces $10 million lawsuit over trade secrets
- Carma HoldCo Inc has filed a lawsuit against its former executives for $10 million, accusing them of breaching trade secret laws.
- The complaint alleges that Bronstein and Cosby misappropriated proprietary information to create their own beer brand using Hogan's likeness.
- Carma seeks damages and legal measures to prevent the defendants from utilizing its trade secrets and marketing strategies.
In Illinois, Carma HoldCo Inc initiated legal action against Chad Bronstein and Nicole Cosby for allegedly violating trade secret laws related to Hulk Hogan's alcohol brand. The lawsuit claims that Bronstein and Cosby, former executives of Carma, misappropriated proprietary information to develop their own beer company, Rahm Inc, which leverages Hogan's name and likeness. Carma states that Bronstein, in his capacity as president, was privy to their strategic initiatives centered on Hogan's brand. The complaint indicates that the breach of contract occurred when these executives engaged in discussions to promote a competing entity without Carma’s knowledge. Bronstein and Cosby are accused of orchestrating a plan that led to the creation of their new venture while still privy to Carma's intellectual property. This included detailed marketing concepts and strategies intended for Hogan's beer brand, which Carma believed were confidential and exclusive to their operations. Following their termination from Carma, tensions escalated, especially as Hogan reportedly did not fulfill contractual obligations related to his ambassadorial role. Carma alleges that post-termination, Bronstein and Cosby actively solicited Hogan to sever ties with them and collaborate with Rahm Inc instead. As a result, Carma’s negotiations for the preservation of its brand, including a joint venture with Hogan, deteriorated significantly. They now assert their rights were infringed and seek damages, royalties, and a halt to Bronstein and Cosby's operations linked to their trade secrets. The lawsuit highlights the complexities of intellectual property rights within celebrity branding initiatives while underlining the competitive dynamics of business relationships in the alcohol industry. It is a significant cautionary tale for how former employees might utilize insider knowledge to forge competitive entities, potentially jeopardizing the interests of their previous employer and associated endorsements.