The parent company of Hulk Hogan’s Real American Beer is being sued by a licensing firm that alleges the concept for the lager brand was swiped by its former executives.
Carma Holdco, a Chicago- and Las Vegas-based branding house, filed the lawsuit in U.S. District Court for the Northern District of Illinois on July 8 against its former president and board chairman Chad Bronstein; former chief legal and licensing officer Nicole Cosby; Real American Beer (RAHM Inc.); and 25 unnamed “Does.” Bloomberg first reported news of the lawsuit.
Carma alleges Bronstein and Cosby breached their executive agreements by taking confidential information gained from their employment to start the Real American Beer brand with former pro wrestler Hogan (Terry Bollea). Carma fired Bronstein and Cosby “for cause” around November 17, 2023, per the lawsuit.
In May 2023, Hogan began working as a brand ambassador with Carma. By July of that year, the firm, via Bronstein, started discussions for a beer brand with Hogan and August and Billy Busch of the famed Anheuser-Busch family.
In mid-August 2023, Carma’s CEO hired a designer “to create beer can designs for ‘The Real American’ brand by Hulk Hogan,” directing the designer “to focus on an all-American beer with themes including guns, American flags and Hulk Hogan.” A pair of offerings were discussed: “Hulk Hogan’s All-American Lager” and “Hulk Hogan’s Patriot Pilsner,” per the lawsuit.
Carama says it received design concepts on September 26, 2023. The company was also “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.”
However, in mid-November 2023, the lawsuit says Carma terminated Bronstein and Cosby “for cause” after learning that Bronstein had structured a proposed deal for Hulk Hogan’s Real American Beer brand in a way that he “would personally benefit with an ownership interest in the venture” and Cosby was authorizing those deals as the company’s counsel.
Carma’s attempts to continue conversations with Hogan and the Busches were to no avail, as Hogan “began neglecting his duties under his ambassador agreement and refused to communicate with Carma, so the relationship with him deteriorated and was eventually terminated,” the lawsuit says.
Following Bronstein’s and Cosby’s terminations, the duo continued pursuing the Real American Beer brand opportunity with Hogan, his representatives and the Busches, the lawsuit alleges. Bronstein and Cosby “solicited” Hogan to end his relationship with Carma and go into business with RAHM, which was established in late March 2024, the lawsuit continues.
Bronstein is a founder and shareholder of RAHM and acts as president and director, while Cosby is a founder, shareholder and general counsel, per the lawsuit.
RAHM filed trademarks for Real American Beer on June 10 and 11, 2024, and Hulk Hogan’s Real American Beer launched on June 13, 2024. RAHM obtained the Real American Lager trademark from August and Billy Busch on July 29, 2024, according to the lawsuit.
Carma alleges the defendants’ action breached their executive contracts and violated federal and state trade secret protection laws by misappropriating Carma’s intellectual property, including “business plans, concepts, and marketing strategy for Hulk Hogan’s Real American brand beer.”
Carma is seeking “at least $10 million” in damages, as well as attorneys’ fees and costs at a jury trial. Additionally, the firm is after restitution of $348,000 from Bronstein and $231,333.33 from Cosby.
Real American Beer did not return a request for comment as of press time. The brand produced an estimated 185 barrels of beer in 2024, according to data from the Brewers Association.
In January, World Wrestling Entertainment (WWE) acquired a minority stake in Hulk Hogan’s Real American Beer as part of a multi-year partnership. As part of the deal, the Real American Beer logo has been featured on the ring mat of WWE matches on Raw on Netflix.