Rapper, Flo Rida, sued Celsius, for not giving him the promised shares and bonuses after an endorsement deal. A jury in Florida awarded Flo Rida $82.6 million after finding that Celsius had breached the contract and tried to hide money from Flo Rida.
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The jury found that the energy drink manufacturer Celsius had breached a contract with the rap artist and hid money from him. The jury awarded Flo Rida, a popular Miami-based hip-hop and rap artist, $82.6 million in damages on Wednesday in his lawsuit against Celsius. Flo Rida, whose real name is Tramar Lacel Dillard, says he was cheated out of millions of dollars by Boca Raton-based Celsius when it tried to hide profits from him after he signed an agreement with the company in 2009. The South Florida jury in Broward County found that Celsius had not only breached its contract with Flo Rida but also attempted to hide profits from him. In response to the verdict, Flo Rida said “I’m happy and relieved that justice has been served and I’m thankful for all the support I received during this difficult time."
Florida rapper Flo Rida, whose legal name is Tramar Dillard, has won an $82.6 million lawsuit against energy drink firm Celsius. The Boca Raton jury found in favor of Flo Rida and his production company, Strong Arm Productions, after they filed a civil lawsuit alleging that Celsius had failed to pay the performer his bonuses and unpaid royalties as part of his endorsement deal with the company. According to reports, Flo Rida sued Celsius in 2016 for breach of contract and fraud. The suit alleged that the company agreed to pay Flo Rida thousands of dollars in royalties and bonuses for his endorsement deal with their brand “Lotta Fizz” but failed to make good on the agreement. The trial was held in South Florida this past Wednesday after a three-year legal battle between Flo Rida and Celsius. The jury ultimately sided with Flo Rida and awarded him $82.6 million dollars for damages and unpaid royalties from Celsius for failing to uphold their agreement with him as part of his endorsement deal with their brand “Lotta Fizz” back in 2016 when he first filed the suit against them.
Flo Rida had become the preferred distribution partner for Celsius and the brand’s largest shareholder, Pepsico, agreed with the company to co-brand products under their agreement. Flo Rida was also to be given primary ownership of an issue of shares in Celsius as part of their contract terms, with a provision that he would be paid based on revenue targets met over a 12-month period.
Celsius argued that Flo Rida failed to meet the sales benchmarks in 2014, but his attorneys argued that Celsius had failed to provide merchandise and other items promised in the contract. According to the Associated Press, a message sent seeking comment from Celsius was not responded to. Flo Rida's attorney, Holland & Knight's Jose Casal, spoke during his closing argument stating that the company had not fulfilled its end of their contract and it was proven with evidence including emails and boxes of cans.
On Wednesday, the jury in Broward Circuit reached a verdict after roughly six hours of deliberation, following the trial. The jury announced its verdict and found Celsius guilty of failing to issue stock shares to Flo Rida in exchange for him promoting their product. Markets Insider reported the rapper was awarded $82.6 million dollars in compensation for being wronged by Celsius. The case revolved around a 2013 agreement between Flo Rida and Celsius that required the company to trade Celsius shares with Flo Rida as payment for promotional activities he did for them including making appearances at their events and having his song “Good Feeling” featured in their commercials. However, Flo Rida's attorney argued that Celius never fulfilled its end of their agreement which led him to file a lawsuit against them in 2016.
Flo Rida, a hip hop artist from Miami, claimed that Celsius Energy Drinks used his name and likeness to promote their drinks without his authorization. The suit also stated that the drink company had agreed to pay Flo Rida for the use of his music in its advertisements and marketing campaigns, but had failed to do so. As a result, Flo Rida's attorneys said he was owed more than $82 million in damages. The case played out in Broward County Court with Flo Rida's attorneys arguing that Celsius had used the artist's own catalogue of music to grow their drinks product line without paying him or seeking his consent. Additionally, they said that Celsius was claiming ownership over songs produced by Arm Productions - a production company owned by the hip-hop artist - which further violated copyright laws. In response, lawyers for Dillard's Inc., which owns Celsius Energy Drinks, argued that the artist had given them permission to use his songs and likeness for promoting their drinks product line. However, the court ultimately sided with Flo Rida and awarded him $82 million in damages for breach of contract and false advertising claims against Celsius Energy Drinks. This is yet another example of how strong-arm tactics can be effective when it comes to protecting an artist's rights and getting fair compensation for their work.
Rapper Flo Rida recently won an $82.6M lawsuit against Energy Drink Firm Celsius, who had ended their endorsement deal with Flo Rida. The jury awarded Flo Rida 1% stake of the company's inventory worth, which was a market valuation of over $826M at the time of the award. Not only did Flo receive a financial award, but his success, in this case, led to other enterprise choices that included sales benchmarks and development expansion for Celsius. This corporate model improvement resulted in elevated gross sales for certain Celsius products and helped launch a brand-new period for the company.
Flo Rida, a well-known hip-hop artist, was featured by Celsius in a number of social media posts and videos to promote their merchandise. He additionally appeared in varied concerts and appearances to symbolize the model.
Sources:
[0]: https://www.mediapost.com/publications/article/381827/
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