In June 2025, former UFC fighter and podcast host Brendan Schaub found himself at the center of a high-stakes civil lawsuit filed in Palm Beach County, Florida, by Brady Bell, founder of Pure Spectrum CBD. The lawsuit alleges fraud, civil theft, wire fraud, tax fraud, and conspiracy, accusing Schaub of misusing company assets, breaching contracts, and orchestrating a hostile takeover to oust Bell from his own company. With damages potentially reaching millions, this case has sparked widespread attention, from Reddit threads to YouTube breakdowns. Here’s a deep dive into the allegations, legal framework, potential consequences, and what it means for those facing similar business disputes.
The Origins of the Brendan Schaub Lawsuit
The saga began in 2018 when Schaub, known for his podcast The Fighter and the Kid and comedy specials like Gringo Papi, partnered with Pure Spectrum CBD, a Colorado-based company founded by Brady Bell. According to court filings, Bell offered Schaub a 10% ownership stake in exchange for promoting the brand through social media, podcast mentions, and event appearances. This partnership stemmed from Schaub’s public claims that CBD oil helped manage his son’s epileptic seizures, a story he shared emotionally on his podcast Below the Belt in 2018.
However, the lawsuit claims Schaub failed to deliver on his promotional obligations, missing all 88 required social media posts and skipping events, yet still collected $370,000 in commissions. More shockingly, the plaintiff alleges Schaub misused Pure Spectrum’s customer database to spam promotions for his failing comedy special, Gringo Papi, prompting threats of legal action from Showtime and IMDb for improper marketing tactics. By late 2020, after months of alleged non-performance, Schaub signed a dissolution agreement, relinquishing his 10% stake and agreeing to a 12-month non-compete clause barring him from promoting rival CBD companies.
Escalating Allegations: Non-Compete Violations and Hostile Takeover
The plot thickened in 2021 when Schaub allegedly violated the non-compete by promoting Direct Hemp, a competitor founded by co-defendant Daniel Huerter. Despite cease-and-desist letters, Schaub continued, ignoring contractual obligations. The lawsuit’s most explosive claim centers on an alleged hostile takeover of Pure Spectrum. Court documents assert that Schaub, Huerter, and others conspired to oust Bell by falsely claiming Schaub still owned a 9.3% stake in the company, despite having signed it away. Schaub allegedly signed fraudulent declarations to facilitate the takeover, pocketing $100,000 for his role.
The plaintiff further accuses Schaub of filing false tax returns using a fraudulent Schedule K-1 form to claim partnership income from Pure Spectrum, potentially implicating him in IRS fraud and wire fraud. These allegations paint Schaub as leveraging his public persona—former UFC fighter, comedian, and influencer—to mislead partners and evade accountability, a pattern the lawsuit describes as “consistent fraudulent conduct for personal gain.”
Legal Framework: Understanding the Charges
The lawsuit includes serious civil claims, each with significant legal implications under Florida law:
- Fraudulent Misrepresentation: Allegedly, Schaub misrepresented his ownership in Pure Spectrum to facilitate the takeover, deceiving Bell and investors. In Florida, proving fraud requires showing intentional misrepresentation, reliance, and damages. Bell claims losses from his ousted equity and company control.
- Civil Theft (Florida Statutes § 772.11): The plaintiff alleges Schaub’s misuse of Pure Spectrum’s customer database and unauthorized commissions constitute theft. Florida’s civil theft statute allows for triple damages, potentially escalating the financial stakes.
- Wire Fraud (18 U.S.C. § 1343): The alleged use of electronic communications (e.g., emails promoting Gringo Papi) to defraud could trigger federal penalties, though this is a civil claim, not criminal.
- IRS Fraud/Filing False Tax Returns (26 U.S.C. § 7206): Falsifying Schedule K-1 forms could lead to IRS scrutiny, with civil penalties or, in extreme cases, criminal referrals.
- Civil Conspiracy: The lawsuit claims Schaub conspired with Huerter and others to defraud Bell, requiring proof of an agreement to commit an unlawful act.
These allegations remain unproven, and Schaub has not been officially served, meaning he has yet to respond in court. The legal process will determine if the plaintiff’s evidence holds up, but the claims suggest a complex business dispute with far-reaching consequences.
Public Reaction and Context
The lawsuit has ignited online discussions, particularly on Reddit’s r/thefighterandthekid subreddit, where users have long criticized Schaub’s business ventures and credibility. Posts highlight skepticism about his CBD claims, with some accusing him of exploiting his son’s health for profit. X posts echo this sentiment, with @calfkickercom alleging Schaub orchestrated fake reviews for his comedy special, further damaging his reputation.
This isn’t Schaub’s first legal rodeo. In 2022, he faced a copyright infringement lawsuit over a YouTube video, mistakenly framing it as defamation, which he lost. He also benefited from a $375 million UFC antitrust settlement in 2025, though he nearly missed the payout. These incidents underscore a pattern of legal and business missteps, amplifying public interest in the current case.
Potential Consequences for Schaub
If the allegations are proven, Schaub could face:
- Financial Penalties: Triple damages under Florida’s civil theft law could exceed $1 million, plus compensatory damages for Bell’s lost equity.
- IRS Investigations: False tax filings could trigger audits or penalties, with potential criminal referrals if intent is proven.
- Reputational Damage: The lawsuit reinforces negative perceptions, potentially impacting Schaub’s podcasting and comedy ventures, already struggling per Reddit sentiment.
- Industry Fallout: Breaching a non-compete and misusing customer data could deter future sponsorships, critical for Schaub’s income, as he claimed 10 endorsement deals in the transcript.
However, Schaub’s defense could argue the dissolution agreement was ambiguous, the non-compete unenforceable, or the tax filings a clerical error. The case’s outcome hinges on evidence like contracts, emails, and witness testimony.
Lessons for Business Owners and Influencers
The Schaub lawsuit offers valuable lessons for entrepreneurs and influencers navigating partnerships:
- Clear Contracts Are Essential: Ambiguous agreements, like Schaub’s with Pure Spectrum, invite disputes. Always define roles, deliverables, and exit terms clearly.
- Respect Non-Compete Clauses: Violating non-competes, as Schaub allegedly did, risks legal action. Consult a lawyer before partnering with competitors.
- Protect Customer Data: Misusing databases, as alleged with Gringo Papi promotions, violates trust and laws like the CAN-SPAM Act.
- Tax Compliance Matters: Falsifying tax documents can lead to severe penalties. Work with accountants to ensure accurate filings.
- Vet Partners Carefully: Schaub’s alleged track record of missed obligations highlights the need to research partners’ reliability.
If you’re facing a similar business dispute, consult a qualified attorney specializing in fraud or contract law. Early legal advice can prevent costly litigation and protect your interests.
What’s Next for the Case?
As of June 28, 2025, Schaub has not been served, delaying his response. The case will likely proceed through discovery, where both sides exchange evidence, followed by motions or a trial. Given the serious allegations, settlement negotiations are possible, as seen in prior CBD lawsuits. The outcome could set a precedent for influencer partnerships in the CBD industry, projected to reach $1.07 billion by 2025.
Why This Matters to You
The Brendan Schaub lawsuit underscores the risks of influencer-driven business deals, especially in unregulated industries like CBD. For consumers, it’s a reminder to scrutinize product endorsements. For business owners, it highlights the importance of due diligence and legal protections. If you suspect fraud or breach of contract in a partnership, contact a defamation or business law attorney to explore your options. Many firms, like ours, offer free consultations to assess your case.
Related Legal Topics to Explore
- Harassment Lawsuits in Media: Learn about workplace misconduct claims in the entertainment industry. [Link to harassment lawsuit blog, artifact_id: 4f8f43f5-62aa-4a74-8ce5-f4c850c07ee5]
- Defamation in the Public Eye: Understand how public figures like Schaub navigate defamation claims. [Link to Gavin Newsom lawsuit blog, artifact_id: 0d63c75e-f0cf-4604-b1da-2be9eec2041b]
- Contract Disputes in Business: Explore common pitfalls in partnership agreements. [Link to Liver King blog, artifact_id: 48958307-ac1b-4ab1-af24-5f463562c4d3]
Sources
- YouTube Transcript, “Brendan Schaub Sued for Fraud in $Million Lawsuit” (youtube.com/watch?v=pBvKX8lRWkY, June 27, 2025)
- Reddit, r/thefighterandthekid, “Court Case info. BRADY L. BELL Plaintiff v. BRENDAN SCHAUB…” (reddit.com, June 27, 2025)
- Reddit, r/thefighterandthekid, “Pure Spectrum CBD CEO (Not the visionary)” (reddit.com, August 27, 2023)
- Law360, “Designer Ends Lawsuit For Partial Ownership In CBD Co.” (law360.com, August 5, 2022)
- Vanity Fair, “Clint Eastwood Wins Second Big Lawsuit Against CBD Industry” (vanityfair.com, July 2, 2022)
- Yahoo Sports, “Brendan Schaub admits forgeting he was in UFC antitrust lawsuit…” (sports.yahoo.com, June 12, 2025)
- X Posts, @calfkickercom, @RealSeedyMac, @DonaldHolben (June 27–28, 2025)
