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Rapper Flo Rida accused Celsius — which Doja Cat called 'Flo Rida's energy drink' — of stiffing him on stock options and bonuses

Jan 6, 2023, 09:44 IST
Insider
AP Photo/Matt Sayles
  • Rapper Flo Rida has sued energy drink company Celsius, alleging the company breached his contract.
  • The "Low" rapper claimed that after 2014 and 2016 endorsement deals, he raised their profile.
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Rapper Flo Rida's relationship with sparkling energy drink brand Celsius is fizzling out as the "Low" rapper takes the company to court in January, claiming he was excluded from tens of thousands of dollars, and even more in stock options.

The Florida rapper, born Tramar Dillard, sued Celsius in 2021, claiming the company breached their 2014 contract. According to the lawsuit filed in 2021 in Broward County, Florida, Flo Rida's legal team claims that a series of ambiguities in his 2014 and 2016 endorsement deals with the company meant that Celsius did not honor the promised bonuses and stock options for the rapper as he helped propel the company to financial success.

"It was specifically contemplated that as Celsius profited in the future, additional compensation would be paid by Celsius in the form of shares of company stock and ongoing royalties," the lawsuit said. His team is seeking at least $30,000 in damages.

Celsius did not respond to Insider's request for comment.

The lawsuit alleges that Celsius failed to notify Flo Rida when key sales goals in his 2014 and 2016 contracts were met. Flo Rida is suing on counts of breach of contract, accounting, and unjust enrichment.

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"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," John Uustal, Flo Rida's lawyer told Insider.

In 2014, Celsius traded for $1 per share and its share price has since hit $100, as its products hit shelves in GNCs, 7 Elevens, and Vitamin Shoppes nationwide. By 2021, Celsius raked in $130 million in sales revenue, according to The Miami New Times.

"In Flo's mind this was always a Vitamin Water type of deal, he was signing on to 1% of the company of a multi-million dollar endorsement deal and was hardly getting paid anything for it," Uustal added.

In the lawsuit, the rapper's legal team claimed that he was a "global brand ambassador" who was recognized by the company's top brass, but was never notified by the company as sales skyrocketed, and did not have access to financial records which would have allowed him to understand their earnings.

In late December, Celsius' legal team lost in a last-ditch effort to avert a trial and toss out the case, meaning that Flo Rida will have his day in court against the energy drink company during a trial starting on January 10 in Broward County, Florida.

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Flo Rida featured the drink heavily in his music video for the track "Hola," with Colombian superstar Maluma, based in Medellin, Colombia. In the video, a group of young partygoers catch a festive second wind after a night of dancing earlier by drinking a "Celsius Heat," one of the products Celsius launched in recent years.

And in a 2019 interview, rapper Doja Cat promoted Flo Rida's partnership with the drink in an interview with Los Angeles hip-hop radio DJ Big Boy, when she addressed a video where she was seen impersonating Cardi B. Doja Cat claimed she impersonated Cardi B because she was "so hyper" on the drink.

"I'm advertising Flo Rida's energy drink right now," Doja Cat says in the interview. "I had this thing called Celsius, it's like 250 milligrams of caffeine, so I drank it and man, I've never been that hyper in my entire life."

Flo Rida's lawyer told Insider that the rapper still drinks some of the products, but it's unclear whether he is still a brand ambassador. An Instagram post from late September 2022 and a tweet from November 2022 show Flo Rida promoting the "Celsius Heat" line.

"He's still in his mind a good partner, and he's sad that they're not," Uustal said. "This has always been a moral issue for him."

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