Jim Cornette has filed a lawsuit against several parties, including Colin Thomson of Kast Media, PodcastOne, LiveOne, and others, claiming advertising revenue allegedly owed to him and his business partner, Brian Last, for their podcasts. The lawsuit, which was filed on January 31st, also names Thomson’s wife Christine, his father Rod, his father-in-law Matthew Yu, and additional John/Jane Does as defendants.

The suit alleges that Colin Thomson, while serving as CEO of Kast Media, had access to the podcast revenue and diverted these funds for his personal benefit. The complaint claims that Thomson transferred the funds to others who were aware of the misappropriation and accepted them. Furthermore, the lawsuit accuses the Thomson family and companies like PodcastOne and LiveOne of conspiring to conceal the stolen funds.

According to the filing, the defendants’ actions resulted in financial strain for Cornette and Last, with PodcastOne and LiveOne allegedly exploiting the situation. The lawsuit accuses these companies of using coercive tactics to pressure the plaintiffs into signing unfavorable contracts in exchange for partial reimbursement of the misappropriated funds.

The suit also specifically alleges that Thomson’s wife, father, and father-in-law received portions of the stolen revenue, and that PodcastOne and LiveOne knowingly benefited from the illicit transfer of funds. Additionally, it accuses PodcastOne of engaging in coercive, unlawful, and unfair business practices aimed at exploiting the plaintiffs’ financial vulnerability.

The complaint outlines the following details:

Since 2016, Jim Cornette and Arcadian Vanguard LLC have been equal partners in producing two highly successful weekly podcasts: “The Jim Cornette Experience” and “Jim Cornette’s Drive Thru.”

Cornette provides his 40+ years of professional wrestling expertise, while Arcadian Vanguard’s Principal, Mr. Last, handles all production matters and business negotiations through Arcadian.

Cornette is the "face" of the shows for publicity purposes, while Last engages outside entities on all technical, financial, and other business matters.

In October 2018, the plaintiffs entered into a Podcast Agreement with Kast Media to serve as the advertising agent for the shows. The agreement specified an 80/20 revenue split, with the plaintiffs entitled to receive 80% of the advertising revenue and Kast retaining 20% as compensation. The agreement had a one-year term with a single one-year renewal option, which was exercised via a September 2019 amendment. The agreement expired in 2020, as confirmed by Thomson’s sworn deposition testimony.

As the expiration date of the initial contract approached, the parties entered negotiations for a new agreement, but obstacles prevented a formal contract from being finalized. A key issue was the plaintiffs’ insistence on a “key man” clause, which reflected their desire to retain the option to opt out of the contract if Kast underwent an ownership change. The plaintiffs made it clear they wanted to work with Kast Media but insisted on this clause for flexibility.

After the written agreement expired, the parties continued operating under an implied contract with the same 80/20 revenue split. Kast Media was responsible for obtaining advertisers, collecting revenue, and remitting 80% to the plaintiffs, as documented in emails and confirmed by Thomson’s testimony.

From the start, Thomson caused all payments for the Cornette podcasts to be made either to Brian Last personally, to Last and Cornette jointly, or eventually to Arcadian Vanguard starting in late 2019. Thomson controlled the timing, recipients, and amounts of these payments.

The payment arrangement is documented through 1099s issued by Kast, physical checks, and text messages between Thomson and Last.

Thomson engaged in a systematic practice of factoring all advertising receivables through companies like United Capital Funding and CapChase, including the plaintiffs’ 80% share, long before any payment issues arose.

This practice began while Kast was still making regular payments to the plaintiffs, highlighting the criminal nature of Thomson’s actions, separate from any later alleged financial difficulties.

The plaintiffs’ 80% share of the advertising revenue was to be paid on “net 30 terms.” However, after this period expired, Thomson routinely factored the receivables, which included the plaintiffs’ portion, without their consent and concealed this from them. Thomson admitted to factoring these receivables while deliberately hiding this practice from the plaintiffs.

Thomson’s actions included withholding payments beyond the agreed-upon time, failing to remit payments as required, and engaging in theft by misappropriating funds for his own use. He also transferred stolen funds to others who knew they were misappropriated.

In late 2021, Thomson transferred $176,000 to his wife, Christine Thomson, using factored funds. These funds were used for personal expenses, including purchasing luxury items such as a Mercedes G-Wagon, a Tesla, and a $10,000 per night suite at the Wynn Las Vegas, as well as other lavish vacations.

Christine Thomson, Colin’s wife, received substantial portions of the misappropriated funds, including at least one documented wire transfer. She also benefited from the purchase and sale of a home in California.

Rod Thomson, Colin’s father, accepted transfers of revenues and/or stock that represented the plaintiffs’ share of advertising revenue. Similarly, Matthew Yu, Colin’s father-in-law, received portions of the misappropriated revenue with full knowledge of its origin.

As the scheme unraveled in early 2023, Thomson initiated discussions with PodcastOne and LiveOne regarding the potential purchase of Kast Media. Records show that Kast had over $11.3 million in liabilities and only $1.7 million in assets.

PodcastOne and LiveOne became aware of approximately $6.9 million in unpaid obligations to podcast creators, including the plaintiffs, and knew this financial strain would make them more desperate for payment.

PodcastOne and LiveOne were aware of the systematic misappropriation of funds through factoring arrangements and of the outstanding debts, including a $1.7 million loan from CapChase.

PodcastOne, LiveOne, and Thomson knew the plaintiffs were unlikely to agree to new contracts unless forced into it, due to previous contract issues regarding the “key man” clause.

On May 28, 2023, LiveOne CEO Rob Ellin contacted Cornette directly and made what Cornette described as a veiled threat about bringing PodcastOne into the dispute. Cornette’s response, detailing Thomson’s misappropriation, was met with an admission that Kast Media would soon face bankruptcy, leaving podcasters with little to nothing.

PodcastOne and LiveOne conspired with Thomson to structure transactions that allowed him to avoid paying podcast partners while acquiring valuable shows at a discount. They also structured deals to allow Thomson to benefit personally through stock issuance and satisfy certain creditors like Brendan Schaub.

The conspiracy continued through carefully coordinated actions from March to September 2023, designed to move assets beyond the reach of legitimate creditors, and issued PodcastOne stock to Thomson, held in escrow for 24 months.

PodcastOne’s CFO admitted that the urgency in executing this scheme was due to the impending public offering, demonstrating the coordinated effort between the companies and Thomson.

In response, the plaintiffs are seeking:

i. Compensatory damages according to proof at trial;
ii. Treble damages under California Penal Code § 496(c);
iii. Punitive damages under California Civil Code § 3294 to punish defendants;
iv. Restitution and disgorgement of ill-gotten gains;
v. Preliminary and permanent injunctive relief to prevent future schemes;
vi. Attorneys’ fees and costs;
vii. Prejudgment interest;
viii. Costs of suit; and
ix. Any other relief deemed just and proper by the Court.