Platinum-selling rapper and South Florida native Flo Rida won his lawsuit against energy drink maker Celsius in Broward County for millions in profits he claimed to have earned in an endorsement deal.
The 43-year-old Miami native and his Hialeah-based company Strong Arm Productions USA, Inc. had claimed there was a breach of contract from the 2014 endorsement deal, saying the rapper signed the deal to serve to "globally market and promote all aspects of the Celsius brand."
Here are the three things you need to know from the case:
What Did the Lawsuit Allege?
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Flo Rida — whose real name is Tramar Dillard — claimed he was owed company stock he was promised and never received for promoting the Celsius drinks for years.
When Celsius asked Dillard to be an ambassador, he said he was in it “for the long haul," — and then during the pandemic, he checked his deals.
“I got a chance to really sit back and check out all my business. And this one in particular, I checked it out,” the rapper told CNBC. “They were telling me that, you know, one of the products that I was endorsing, I wasn't selling. And then I got a chance to really look at it now, and I was doing more than well.”
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He said his endorsement played a big role in the company’s success, especially when it first got started and each share was sold for less than $1. Shares are now above $100.
In the complaint filed back in May of 2021, Flo Rida’s team claimed that even the top managers at the brand had recognized that his being involved in the brand “accelerated the introduction of the Celsius brand to millions around the world.”
“He’s supposed to be a 1% owner in the company," said John Uustal, Dillard's attorney. "Those benchmarks are met, just issue the stock. But they refuse for whatever reason.”
Dillard took the stand on the first day of the trial, telling the jury he felt Celsius was family and now he feels betrayed.
“I did everything as far as doing my part and with all due respect the parties that be, I trusted them and they didn’t do their part," he said.
How Did Celsius Respond?
Attorneys for Celsius said Dillard was properly compensated during the contract agreement with 250,000 shares of company stock and that he wasn’t owed any other money because the endorsement deal ended in 2018, long before Celsius had major success.
The brand also sent a statement to CNBC, saying it enjoyed working with the rapper years ago and it wishes him the best, but they are disappointed that he’s involved in the litigation.
What Are the Possible Outcomes?
Flo Rida's attorney, John Uustal, had said there’s around $75 million at stake. Flo Rida was seeking damages exceeding $30,000, exclusive of interest, attorney's fees and costs.
