FORT LAUDERDALE, Fla. — Celsius energy drinks would be nothing without the backing of recording artist Flo Rida, and the Boca Raton-based company owes him more than $82.6 million in damages for trying to hide it, a Broward jury decided Wednesday.
The verdict came on the second day of deliberation, after jurors were treated to a crash course in contract law, endorsement deals, revenue sharing and who gets credit when a company’s fortunes soar.
In this case the company was Celsius Holdings, which was a minor player in the market when it inked a deal with Tramar Dillard, professionally known as Flo Rida, and his company Strong Arm productions in 2014. The artist proceeded to publicly connect himself with the product, conspicuously featuring Celsius drinks in his music videos, including the award-winning 2015 single “My House,” which was played in court last week.
In return, Dillard was supposed to receive a percentage of stocks and bonuses worth millions once Celsius achieved a benchmark in sales revenue. Lawyers for the company argued that the benchmark was reached only after its endorsement deal with Flo Rida expired, and other business decisions were responsible for the increased sales and company stock value that followed.
The jury didn’t buy that explanation, finding that the company hid its success from Strong Arm to avoid having to hold up its end of the endorsement deal.
“To God be the glory,” Dillard said outside court after the verdict. Thanking his lawyers, the judge and the jury, Dillard said he was compelled to sue because he lifted the company’s status from an anonymous small business to a major player in the industry.
“I carried them on my back,” he said. “I put them in my videos. They were with me everywhere I played.”
Celsius also used the deal to its advantage, marketing one of its products as “Flo Fusion” to capitalize on the rapper’s name recognition. The name of the product was changed in 2019 after the endorsement deal expired.
Both sides were represented by powerhouse legal teams — Jose Angel Cassal of the Holland & Knight firm represented Celsius, while Dillard and Strong Arm were represented by John Uustal of Kelly/Uustal. Uustal successfully argued that Dillard was entitled to 1% of Celsius, and while Broward Circuit Judge David Haimes said during that case that he could not order a company to turn over stock, the jury could calculate the value of the stock and award it to the plaintiff.
Celsius was $50 million in debt when it entered into its deal with Flo Rida, Uustal said. It’s now a multibillion-dollar company, and Flo Rida deserves some of the credit, he said.
“The company made some brilliant business decisions,” Uustal said. But its relationship with Flo Rida put the company in the position to make those decisions, he said, elevating the company’s profile and opening the doors to opportunities that would not have presented themselves without Flo Rida’s involvement.
———
