$82.5 Million Varsity Brands Class Action Settlement Approved

A federal judge in Tennessee has granted final approval to an $82.5 million class action settlement involving Varsity Brands, resolving claims of an alleged monopoly in cheerleading.

Cheerleading Antitrust Lawsuit Overview

Who: Varsity Brands LLC and related defendants.

Why: The settlement addresses allegations that Varsity Brands created a monopoly in cheer competitions, cheer camps, and cheer apparel.

Where: The lawsuit was filed in Tennessee federal court.

Judge Rules Settlement Fair and Adequate

On Dec. 6, U.S. District Judge Sheryl H. Lipman ruled that the settlement was “fair, reasonable and adequate.” This decision concludes claims against Varsity Brands, its founder, and private equity investors Charlesbank Capital and Bain Capital, who were accused of colluding with the U.S. All Star Federation to establish a monopoly.

Allegations Against Varsity Brands

The lawsuit, initiated in 2020, claimed that the defendants violated federal antitrust laws and state consumer protection laws by:

• Monopolizing cheer competitions, camps, and apparel markets.
• Acquiring competitors and forming exclusive agreements with All Star Gyms and schools.
• Colluding with the governing body of All Star Cheer to limit competition, enabling inflated prices for services and products.

The defendants have denied any wrongdoing but opted to settle to resolve the litigation.

Settlement Benefits and Conditions

The settlement will provide monetary relief to individuals and entities that paid Varsity Brands for:

• Fees and expenses related to Varsity Cheer Competitions.
• Varsity Cheer apparel.
• Varsity Cheer Camp fees or accommodations at competitions.

Eligible payments cover expenses incurred between Dec. 10, 2016, and March 31, 2024. Class members in some states may also receive monetary relief.

Under the settlement terms, the defendants have agreed to cease certain anticompetitive practices, such as conditioning eligibility for championship participation on attendance at Varsity-owned cheer camps.

Previous Settlements

In a related matter, a $43.5 million settlement was approved last fall between Varsity Brands and a California-based cheerleading gym.

Legal Representation

The parents involved in the lawsuit are represented by a team of attorneys from multiple law firms.

Case Information

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.