At the start of 2021, Flo Rida, whose real name is Tramar Dillard, initiated legal action against Celsius, the sparkling energy drink brand he had a contractual relationship with since 2014.
His legal team argued that the company had neglected to offer the incentives and stock options the rapper was due, which included a large sum of money, as his presence had helped bring financial success to Celsius.
The lawsuit was filed in Broward County, Florida, and it pointed to the ambiguities in the 2014 and 2016 endorsement deals as the reason for the company’s failure to keep their end of the bargain.
Flo Rida’s team has filed a lawsuit against Celsius, claiming that the company did not give him the compensation and shares of company stock he was due after certain sales goals were met.
The legal action seeks at least $30,000 in damages, as well as breach of contract, accounting, and unjust enrichment.
Flo Rida, the rapper, was granted a sum of more than $82 million in a court case against the makers of Celsius energy drink when their endorsement agreement did not go as planned.
On Wednesday, a jury in Florida granted Flo Rida, the rapper behind chart-topping songs such as “Low” and “Right Round,” a whopping sum of $82 million in a legal battle he waged against Celsius energy drinks. The suit was based on the allegation that Celsius owed him money and stock options due to a prior endorsement agreement.
Rapper Flo Rida (birth name: Tramar Dillard) was awarded a settlement of $82,640,450 as a result of a successful case against Celsius energy drink.
During the court proceedings, his lawyer had argued that he wanted the one percent ownership of the firm that had originally been promised to him, not a figure in monetary terms. $27 million of the judgment was for the 250,000 shares the artist was due from the company.
The jury sided with Flo Rida’s case, which alleged that Celsius had not kept its end of a contract he had signed with them in 2014 and renewed in 2016.
In 2014, Flo Rida signed an endorsement contract with Celsius and renewed it two years later. However, in 2021, the rapper took legal action against the company, accusing them of not delivering on the bonuses he was promised in the agreement.
Flo Rida’s lawyer, John Uustal, told Insider that the 2014 and 2016 contracts outline that the musician should be given 500,000 shares of the company stock, plus an additional 250,000 shares, but the details of what sort of units need to be sold and the timeframe to do so are not specified. Celsius did not respond to Insider’s request for comment.
According to his team, the vagueness of the contract prevented them from claiming these benefits. His lawyer, John Uustal, stated that the artist should have been granted 500,000 stocks as part of the contract, and an additional 250,000 if some predetermined sales targets were met.
In 2014, the share price of Celsius started at one dollar, and it has since reached $100 due to the fact that its products are available in GNCs, 7 Elevens, and Vitamin Shoppes across the country.
According to The Miami New Times, Celsius generated $130 million in sales revenue in 2021.
Uustal commented that Flo Rida thought he was going to own 1% of the business in return for a big endorsement, but he was not receiving much money for it.
In the lawsuit, the rapper’s legal representatives argued that he was a “global brand ambassador” who was recognized by the company’s bosses, yet he was not told of their profits as they started to soar, and he did not have access to their financial records which could have enabled him to comprehend their income.
In late December, the court rejected the plea of Celsius’ legal team to dismiss the case, hence Flo Rida will have a judicial hearing against the energy beverage firm beginning on January 10th in Broward County, Florida.
Flo Rida admitted that he was uninformed regarding the financial status of Celsius and was not notified when the company achieved its goals.
Attorneys for Celsius had argued that the time limit for Flo Rida to take legal action had expired and their collaboration with him was finished in 2018. Flo Rida asserted that endorsing the brand was a factor in its success. Celsius Inc. Holdings shares are now valued at over $100.
In the “Hola” music video, starring Maluma from Medellin, Colombia, a group of youngsters gets a jolt of energy following a night of dancing by drinking a “Celsius Heat,” an item launched by Celsius in the recent years.
In an interview with Big Boy on Los Angeles hip-hop radio in 2019, Doja Cat applauded Flo Rida’s collaboration with the drink. Doja Cat clarified that she had impersonated Cardi B in a video because she was “so hyper” from consuming the beverage.
Doja Cat stated in the interview that she is currently endorsing Flo Rida’s energy drink. She shared that she tried the drink that has 250 milligrams of caffeine and she has never felt so energetic in her life.
Flo Rida’s representative said to Insider that the rapper still uses the product but it is unknown if he is still a brand ambassador. Social media posts from September and November 2022 demonstrate Flo Rida promoting the “Celsius Heat” line. The lawyer added that this is a moral issue for Flo Rida and he is disappointed that he is not part of the brand anymore.
