Rapper Flo Rida victorious in legal battle against Celsius Energy Drink, awarded $82 million
Rapper, Tramar Dillard a.k.a. Flo Rida has been handed a major victory, in a lawsuit filed against the makers of Celsius Energy Drinks.
Who is Flo Rida?
Tramar Lacel Dillard, whose stage name is Flo Rida was born in Carol City, Florida and first gained media success in 2007. He is best known for his energetic, party themed hit songs, “Low” and “Right Round” both hit platinum. He has since added more bling to his trophy selection with numerous gold and platinum singles awarded by the RIAA.
An ENDORSEMENT DEAL GONE WRONG
On Thursday in Florida, Flo Rida celebrated his win following allegations that Celsius Energy Inc used the claimant’s fame, likeness, and mental acumen to promote their product, while he suffered financial harm.
The basis of the lawsuit and counter arguments shows that in 2014, Flo Rida endorsed a contract with Celsius Energy Inc. In 2016, both parties renewed the contract and in May 2021, Flo Rida sued, arguing that he was not given stock options and other bonuses promised in the contract terms as “he’s entitled to 500,000 shares of stock via the contract, and entitled to 250,000 shares of stock if certain things happen …one of those yardsticks is that a certain number of units of products need to be sold, but unfortunately, the contract doesn’t specify which type of unit-is it a box, is it a drink? And there is no time frame or deadline”.
Counter arguments by lawyers representing Celsius said that the timeframe, within which to institute a lawsuit had caught up with Flo Rida and the deal had ended in 2018.
An ENDORSEMENT DEAL GONE WRONG
In the verdict, the jury unanimously agreed that there was a breach of contract, thereby awarding in damages, the sum of $12 million, and $70 million as compensatory damages. Celsius Energy Inc stocks have dropped over 12% over the fallout of this case.
An ecstatic Flo Rida told journalists outside the court that “I hope this case serves as a reminder that artists need to be respected and compensated for their work” and that he felt the case was “justified”, redeeming his hope in the justice system.
It is unclear at this time, whether Celsius Energy Inc will appeal the decision of the jury but, they issued a statement saying they were “disappointed” with the outcome of the case.
This is absolutely a huge setback for Celsius as the jury decides that there was a breach of contract because Flo Rida adduced evidence that he was not awarded stock shares –after reaching sales goals and it was part of the deal.
Important things to consider
This case between Flo Rida and Celsius Energy Inc highlights the importance of building a firmly established legal foundation alongside well-drafted documents set in place to avoid potential litigation. It is important that both parties clearly understand and agree upon the terms of the contract, including any bonuses or incentives that may be offered, what are the sales goals or when the milestones must be met in order for these incentives to be awarded etc.
When you fail to clearly document the terms in a contract, it can lead to misunderstandings and disputes, as we have seen many times over. It is also important to state a clearly outlined timeline and when the contract will expire. If you do this, you can limit and even avoid those nasty disputes over the validity of your contract.
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Mark Lazarus
Mark Lazarus, the visionary behind the business and the fresh blood of the Lazarus Legal team, Mark (or Laz as he is often known) owes much of his success to his past experiences. And he’s made it his personal goal to bring that wisdom and formula to the firm.
