Rapper FloRida was awarded $82.6 million on Wednesday after a six-person Florida jury found that energy drink maker Celsius Holdings Inc. didn’t hold up its end of an endorsement deal from 2014 to 2018.
The verdict marks the culmination of an almost two-year long lawsuit first filed by FloRida, whose real name is Tramar Dillard, and his production company, Strong Arm Productions, in May 2021. Dillard alleged the Boca Raton, Florida-based company failed to follow through with promised stocks and royalties after becoming business partners in 2014, as reported in Forbes.
When he took to the stand to testify on January 12, Dillard said he was inspired to endorse a product after seeing the success hip-hop artist 50 Cent experienced through his endorsement deal with Vitamin Water.
“I had seen that he had taken advantage of equity, royalties and things of that nature and I wanted to maximize my career,” he said.
The “Low” rapper first inked a deal with Celsius in 2014 granting exclusive licensing and endorsement rights for functional beverages. According to Law360, the first contract provided for a $300,000 upfront cash payment plus 250,000 shares in Celsius Holdings Inc. Additionally, if the energy drink maker achieved $1 million in “gross cumulative co-branded revenues in any 12-month period” during the two-year term, Dillard would receive 250,000 additional shares.
In court, Dillard argued their co-branded product – a drink powder named Flo Fusion – hit those benchmarks if each single-serving packet counted as one unit, according to Law360. Rebecca Plasencia, who represents Celsius, fired back by saying the product was only ever sold in 14- and 40-count packs to distributors and retailers, and that neither benchmark was reached before the initial contract expired in March 2016.
The rapper signed another deal with Celsius in 2016, which he claimed is an extension of the original contract but the company claims is an entirely new contract.
Through the new contract, Dillard received a $500,000 cash, advance on future royalties and an additional 250,000 shares. He was also slated to receive royalties on two co-branded products, RTD Sparkling Orange and Flo Fusion drink powder sticks.
Upon the contract’s expiration in October 2018, Celsius claims Dillard had no outstanding balance, as the amount of royalties he was entitled to on the two products did not exceed the $500,000 he had already received. When the parties did not sign a new deal, the energy drink company rebranded Flo Fusion sticks, which Dillard claimed was done in an attempt to “stiff him on royalties,” which he understood to be ongoing.
In the civil complaint as well as his testimony, Dillard claimed he had helped the brand reach new heights in terms of brand awareness, growth and expansion. He said, “I wanted something that was parallel to my lifestyle and I envisioned that this product, Celsius, could be as phenomenal as myself.”
Despite the suit, Dillard told the Associated Press that he continues to consume Celsius products, owns stock in the company and would like to work with the energy drink maker again in the future.
“When you basically planted the seed for something that is successful, you can’t help but have unconditional love,” he said.