Judge gives final approval to $82.5M Varsity Brands settlement

Update:

• A Tennessee federal judge gave final approval to an $82.5 million Varsity Brands class action settlement, ending claims the company worked to artificially inflate the price of cheer participation. 
• On Dec. 6, U.S. District Judge Sheryl H. Lipman ruled the settlement was fair, reasonable and adequate.
• The agreement ended claims Varsity Brands, its founder and private equity investors Charlsebank Capital and Bain Capital worked with the U.S. All Star Federation to create a monopoly in cheer competitions, camps and apparel.

Cheerleading antitrust lawsuit overview:

• Who: Varsity Brands LLC and other defendants have agreed to pay $82.5 million to settle a cheerleading antitrust lawsuit.
• Why: The settlement will resolve a cheerleading antitrust lawsuit alleging the defendants created a monopoly in cheer competitions, cheer camps and cheer apparel.
• Where: The Varsity Brands lawsuit was filed in Tennessee federal court.

(May 22, 2024)

An $82.5 million settlement has been reached in a cheerleading antitrust lawsuit against Varsity Brands LLC and others over an alleged monopoly in cheer competitions, cheer camps and cheer apparel, Law360 reports.

On May 13, the plaintiffs asked a Tennessee federal judge to approve the Varsity Brands lawsuit settlement because it is “fair, reasonable and adequate” and the proposed settlement classes meet the standards for certification, according to their court filing.

The plaintiffs first filed the Varsity Brands lawsuit in 2020, claiming the defendants violated federal antitrust laws and various state consumer protection laws by monopolizing or conspiring to monopolize cheer competitions, cheer camps and cheer apparel markets.

The defendants allegedly achieved this monopoly by strategically acquiring their competitors and by entering into exclusive dealing agreements with All Star Gyms and schools. They also colluded with the governing body for All Star Cheer to stifle competition, allowing them to charge inflated prices for its products and services, the cheerleading antitrust lawsuit alleges.

The defendants did not admit to any wrongdoing but agreed to settle the Varsity Brands lawsuit to resolve the litigation.

Varsity Brands lawsuit settlement to provide monetary, injunctive relief

If the settlement is finalized, recipients will include individuals and entities that indirectly paid Varsity Brands or any of its affiliates for certain fees and expenses associated with participating in Varsity Cheer Competitions, Varsity Cheer apparel, Varsity Cheer Camp fees or accommodations at Varsity Cheer Competitions between Dec. 10, 2016, and March 31, 2024.

Class members in certain states may also be entitled to monetary relief.

Under the terms of the Varsity Brands lawsuit settlement, the defendants agreed to stop some of their allegedly anticompetitive behavior such as conditioning athletes’ eligibility to compete in championships on their participation in cheer camps owned by Varsity.

Last fall, a Tennessee federal judge approved a $43.5 million cheerleading antitrust lawsuit settlement between Varsity Brands and a California-based cheerleading gym.

Do you think the judge should approve the Varsity Brands lawsuit settlement? Join the discussion in the comments.

The parents are represented by Joseph R. Saveri, Ronnie Seidel Spiegel, David Seidel, Kevin Rayhill and Elissa A. Buchanan of Joseph Saveri Law Firm LLP, Van Turner of Turner Feild PLLC, Richard M. Paul III and Ashlea Schwarz of Paul LLP, Jason S. Hartley of Hartley LLP and Daniel E. Gustafson, Daniel C. Hedlund and Daniel J. Nordin of Gustafson Gluek PLLC.

The cheerleading antitrust lawsuit is Jones, et al. v. Bain Capital Private Equity, et al., Case No. 2:20-cv-02892, in the U.S. District Court for the Western District of Tennessee.

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