NFL, Reebok Settle Antitrust Class Action for $4.75 Million

The National Football League and apparel maker Reebok have settled a class action lawsuit that accused both companies of violating antitrust law.

The class action complaint, filed in October of 2012, alleged that the NFL and Reebok entered into a price-fixing arrangement that decreased competition of NFL apparel. Prior to 2000, many companies made NFL team-related apparel and were in competition which each other over quality and price.

However, the exclusive arrangement between Reebok and NFL created a monopoly for Reebok, and consumers have seen prices for NFL gear increase, according to the class action complaint.

Under the terms of the proposed settlement, the NFL and Reebok will pay $4.75 million, which will be used to reimburse anyone in California who purchased an NFL-branded jersey, hat or shoes, within the state between Oct. 25, 2008, and April 1, 2012.

The NFL and Reebok continue to deny that they violated antitrust laws, and state that they “have nevertheless agreed to enter into this Agreement to avoid further expense, inconvenience, and the distraction of burdensome and protracted litigation, and thereby to put to rest this controversy and avoid the risks inherent in complex litigation.”

Previously in this class action, plaintiff Michael Villa filed a motion for partial summary judgment, which the judge dismissed, calling the motion premature. Since that ruling, Villa has filed for class certification. Before the judge ruled on the class certification motion, the parties agreed to mediation, which led to this potential settlement.

The $4.75 million will be split on a pro-rata basis based on the number of claimants, if the NFL Reebok antitrust class action settlement is approved by the court. Potential claimants will have to submit a Claim Form identifying what was purchased, from where, and for how much. Without proof of purchase, only two items may be claimed.

Items eligible for restitution under the NFL Reebok antitrust class action settlement are any purchases made by California residents, or any items physically purchased in California, at any time between Oct. 25, 2008, and April 1, 2012. Items that qualify for restitution are NFL team-related hats, jerseys, and shoes.

Purchases of jerseys or shoes will be entitled to three times the reimbursement amount and hats, up to one-third of the original purchase price. Claimants who do not have a proof of purchase will receive one-half of those same repayment amounts. Again, the repayment amount will be calculated based on the number of claims the Class receives, if the settlement is approved.

Details about when and how to file a claim for the NFL Reebok antitrust class action lawsuit were not immediately available, and will be updated if the court approves the potential settlement.  Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “favorite” using your free Top Class Actions account to receive notifications when this article is updated.

Villa is represented by Roy A. Katriel of The Katriel Law Firm and Ralph B. Kalfayan of Krause Kalfayan Benink & Slavens, LLP.

The NFL Reebok Antitrust Class Action Lawsuit is Dang v. San Francisco Forty Niners Ltd. et al., Case No. 5:12-cv-05481, in the U.S. District Court for the Northern District of California.

UPDATE: The NFL, Reebok class action settlement is now open! Click here to file a Claim. 

UPDATE 2: On February 23, 2017, Top Class Actions viewers who filed timely and valid claims for the California NFL Apparel class action settlement began receiving checks worth as much as $63.15!