Why did Flo Rida sue Celsius? $82 million lawsuit explained

Hip Hop artist Flo Rida was awarded $82.6 million in damages after a South Florida jury found that the makers of Celsius energy drinks breached a contract with the rapper.

The Low singer, whose name is Tramar Dillard, sued the company in 2021. He alleged that Celsius presented him with a vague contract and did not give him information about their financials while he was the brand ambassador of the company from 2014 to 2018.

In a statement to AP, the artist said:

“Basically, I helped birth this company, and all we was looking for was some trustworthy people who acted as if they were family. And then when it comes down to the success of today, they just forgot about me.”

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Flo Rida sued Celsius as they did not give him stock options and bonuses promised in his contract

Flo Rida alleged that the company did not give him stock options and other bonuses that he was promised. The bonuses were promised to the artist if certain sale requirements were met. The artist's team argued that the contract was vague, preventing him from getting the benefits in question.

During the course of the case that concluded on Wednesday, Attorney John Uustal, representing Flo Rida, said that the artist wanted the 1% ownership that he was promised by the company. Uutsal also said that the rapper would still be willing to accept the stock instead of the jury’s monetary award.

As per USA Today, shedding more light on the case, he said:

“He (Flo Rida) loved the product, and it’s been a very successful four-year relationship. There were some benchmarks. He was supposed to get stock when certain things happened. And there became a dispute about whether those benchmarks had been reached. So that’s what this was about.”

According to the civil complaint, Flo Rida’s endorsement played a major role in the company’s brand development. The complaint noted that the artist helped in the development, growth, and expansion of the company while introducing Celsius to millions around the world.

The artist's attorneys also argued that their partnership helped Celsius grow its product portfolio. The company added a powder product and a new product line to its offerings called Celsius Heat. The revenue from the same was reportedly being collected by the company, as per the complaint.

John Uutsal also said that Celsius' contract was rather vague as he went on to explain how there was no timeframe set for certain goals to be met.

Speaking to Insider, Uutsal said:

"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's no timeframe or deadline.”

Flo Rida noted that he still owns some stock in the company and is open to working with them in the future.

He told Fortune:

“I’m still a owner in the company. And when you basically planted the seed for something that is successful, you can’t help but have unconditional love.”

Meanwhile, as per previous filings cited by various publications, Celsius' lawyers noted that the company reached its peak after the endorsement deal with Flo Rida ended. They also noted that other business decisions led to increased sales and stock value.