Wednesday, March 15, 2023
As Marisa Dellatto reports in Forbes, rapper Flo Rida prevailed in a jury trial on his claims against energy drink company, Celsius. Being a man who can now count his age in decades, I had never heard of or taken note of this line of beverages or of Flo Rida, but my daughter went to Flo Rida concert last year, and now I am seeing Celsius ads every time I stream content on services that have ads. Live and learn.
The suit arises out of an endorsement deal that Flo Rida (Flo? Mr. Rida?) signed with with Celsius. The deal was renewed in 2016 and terminated in 2018, Flo Rida claimed that he was entitled to shares in the company, and a jury agreed. Celsius argued that the statute of limitations had lapsed, but the jury found(!) that Celsius was equitably estopped from making such an argument.
The verdict consists, in part, of 250,000 shares in the company, which at the time of the verdict were selling for $110/share. That accounts for $27 million of the verdict. I'm not sure where the rest comes from.
Flo, I've never tasted the stuff, but my advice is: liquidate your shares in a hurry, because this stuff has fad written all over it. It's already down to $84.50/share, but as recently as May 2020, it was below $5/share, and those times may well return.