Shark Tank star Daymond John is suing two entrepreneurs, claiming they ran off with “at least tens of millions of dollars” in commissions after he brought them into a major PPE deal during the early days of COVID.
John, the founder of FUBU, says Lisa Kornman Avila and Rashmi Budhram, who ran Buko LLC, cut him out completely after making nearly $150 million from just one deal, thanks to his connections.
The lawsuit says John’s company, The Shark Group, helped set up contracts to supply N95 masks, goggles, and isolation gowns to state governments during a time when these items were extremely hard to find. The Shark Group had the network, while Kornman and Budhram, through Buko LLC, had the manufacturing contacts to source the goods. The complaint alleges that once the deals were done and the money came in, the two simply stopped responding.
John’s consultancy, The Shark Group, was founded in 2005 and gives clients access to his business network. Buko LLC, which handles design, development, and product management, had been an “in-house partner/preferred partner” with John since 2014. According to The Independent, the arrangement was simple: John would refer clients, Buko would source the products, and The Shark Group would receive a commission.
John connected Buko with California’s government, leading to deals worth hundreds of millions of dollars
Buko was even allowed to use John’s name and the Shark brand in its marketing, and Kornman appeared on Beyond the Tank, a Shark Tank spinoff, which the complaint says gave Buko a big boost in market exposure. When the pandemic hit in early 2020, the US faced serious PPE shortages, and widespread fraud made things even worse.
On March 20, 2020, John’s head of sales connected with a procurement official from California’s Department of General Services, who had been tasked by Governor Gavin Newsom to get PPE for the state. John presented himself as someone who could source essential equipment like masks, gloves, gowns, and hand sanitizer.
The agreed terms were that Buko would source the items and pay The Shark Group 20 percent of total revenue and one-third of net profits as a commission. In April 2020, California signed a letter of intent to buy up to $2.825 billion in PPE from Shark, with an initial purchase order worth $233.9 million.
However, that first transaction fell through due to issues with sourcing and financing. This case is one of several high-profile legal disputes making headlines lately, much like the lawsuit filed over a 22-year-old New Jersey man’s death after he was sucked into a ride called the Intimidator.
After that, Shark worked with California officials to focus only on isolation gowns. On April 17, 2020, the state ordered 20 million Level 2 isolation gowns at $8.95 each. Buko sourced the gowns, and Kornman reportedly told John his referral fee would be sent “as soon as funds were received.”
Just ten days later, California placed another order for 100 million Level 2 gowns. The complaint states that Buko received payments totalling over $146 million for these orders, and The Shark Group’s agreed referral fee for that sale alone was around $30 million.
John’s complaint also states that Buko closed deals with Michigan and New York for isolation gowns, and with the Texas Division of Emergency Management for masks, all through John’s introductions. Other organisations John connected Buko with included Emory University, the Geo Group, H-E-B, and the State of Florida.
John himself faced negative press over price-gouging allegations related to the Florida deal, but he pushed back, saying he had no role in setting the prices. Starting in early May 2020, just two months into their partnership, Kornman and Budhram stopped returning The Shark Group’s calls entirely.
Six years later, John says he has not received any payment. “To date, defendants have refused to pay any money to Shark, despite securing multiple orders worth hundreds of millions of dollars from [the State of California] and other entities due to Shark’s efforts,” the complaint states. The lawsuit also claims the two reorganised Buko under different names, including 5 Time Zones LLC, to hide money and make themselves “judgment-proof.”
John is now seeking a money judgment, punitive damages, interest, and legal fees.
Published: Apr 7, 2026 11:29 am