Since her days at Disney, singer, and actress Selena Gomez has stepped into entrepreneurship and brand collaborations. Before she launched her own company, Rare Beauty in 2019, Gomez's early businesses included Dream Out Loud, a fashion line launched in 2010.
In 2011, Selena Gomez reportedly collaborated with Adrenalina Inc, a perfume company to launch a perfume with her name. However, she backed out at the last minute of a multi-million dollar endorsement deal. The singer and actress was sued by the company since she reportedly failed to be the spokesperson for the brand.
Gomez's lawyers were quick to respond and counter-sued the company in April 2013 and claimed that Gomez backed out of the deal after the company owed her $5.2 million in lost earnings. The lawsuit was settled with Gomez paying a six-figure amount to Adrenalina Inc.
Why did Adrenalina Inc. sue Selena Gomez?
Adrenalina Inc. filed a lawsuit against Selena Gomez in March 2013 backing out on a perfume project. According to the Courthouse News Service, Adrenalina Inc. said that they had spent more than $2.2 million developing and marketing a line of perfumes for Selena Gomez.
The perfumer reported that they promoted Gomez's perfume through "activities online, mailer campaigns, and in-store brand features." Additionally, they also held a contest allowing Gomez's fans to help develop her scent. Adrenalina Inc. filed the lawsuit when Gomez failed to appear at the Macy's store in Miami for a promotion and other promotional events in Mexico.
Further, the company claimed that they received a letter from Selena Gomez's company, July Moon Productions that they would be terminating the agreement in 30 days. Selena Gomez's team counter-sued Adrenalina Inc. and claimed that the company had gone broke and could not manufacture or market her perfume.
According to the Hollywood Reporter, the Wizards Of Waverly Place alum was represented by Michael Weinsten at Lavely & Singer. Gomez's attorneys insisted that Adrenalina Inc. had promised to pay a 5 percent royalty that would guarantee $5.2 million from the total earnings of the perfume. In a statement, Michael spoke about the lawsuit and reported,
"Any claim that Selena did not meet her promotional obligations is ridiculous, manufactured after Adrenalina was terminated. Selena will vigorously defend this lawsuit, and will soon bring her own lawsuit against Adrenalina for millions in damages."
However, according to Fox News, Selena Gomez lost in court and had to pay a six-figure amount for backing out of the perfume deal. While it has not been revealed how much Gomez had to pay, the lawsuit eventually reached a settlement.
As a young and emerging star, Gomez started her clothing line, Dream Out Loud, and wanted to launch her perfume with Adrenalina Inc. Even though Gomez's collaboration with Adrenalina Inc. fell through, she has collaborated with many others in the last decade.
In 2016, Gomez partnered with Coach and released a limited collection called Selena Grace. She also partnered with Puma and Pantene as the brand ambassador.
More recently, Gomez's beauty line, Rare Beauty has bumped her status to nearly becoming a billionaire. As per Cosmopolitan, Gomez's net worth is now $800 million, owing to the success of Rare Beauty.