Illinois-based Carma HoldCo has accused its former president, Chad Bronstein, and former chief legal and licensing officer Nicole Cosby of conspiring to misappropriate confidential materials to launch a rival beer brand, Real American Beer, according to court documents seen by Law360.
The pair, the company claims, used trade secrets and intellectual property gleaned during their tenure at Carma to develop and commercialise a beer featuring wrestling icon Hulk Hogan (pictured).
Carma contends that both executives broke their employment agreements by exploiting company-owned marketing strategies and creative assets to fast-track their new drinks venture, Rahm Inc, which owns the Real American Beer brand.
Hulk Hogan deal allegedly hijacked
The legal complaint outlines Carma’s prior relationship with Hogan, stating that the company had formalised a partnership with the former wrestler in February 2023. Bronstein, while still serving as Carma’s president and chairman, was “intimately involved” in developing the Real American Beer brand and had participated in joint venture discussions with August and Billy Busch, who held a trademark linked to the beer’s branding.
Nicole Cosby, as Carma’s chief legal officer, was also closely involved in these brand plans. According to Carma, she was privy to confidential product proposals that included beer can concepts featuring Hogan’s name and likeness, developed in-house by a designer and submitted to the company in September 2023.
From concept to competitor
Two months later, Carma terminated both Bronstein and Cosby, claiming the former had structured deals to gain personal ownership stakes in the emerging beer brand. Cosby is alleged to have provided legal backing to Bronstein’s manoeuvres.
Following their departure, Carma alleges that the pair continued discussions with Hogan and the Busch family, ultimately persuading Hogan to abandon his contract with Carma and collaborate with Rahm Inc instead. Hogan reportedly became uncooperative and ceased his ambassadorial duties shortly after the executives’ exit.
Trade secrets, trademarks and legal demands
Rahm Inc has since filed trademark applications for “Real American Beer”, covering not only beer but also non-alcoholic variants and related merchandise such as mugs and coolers. Carma argues this constitutes a misuse of its proprietary information and is seeking financial redress and a court order to halt the use and sale of what it claims are stolen business assets.