Parents, Varsity Brands Settles Cheerleading Antitrust Lawsuit for $82.5 Million

Cheerleader Antitrust Lawsuits 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 that alleges that the defendants created a monopoly on cheerleading competitions, cheerleading camps and cheerleading apparel.
• Where: Varsity Brands’ lawsuit was filed in federal court in Tennessee.

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An $82.5 million settlement has been reached in a cheerleading antitrust lawsuit against Varsity Brands LLC and others over an alleged monopoly on cheerleading competitions, cheerleading camps and cheerleading 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 appropriate” and the proposed settlement classes meet certification standards, according to their court documents.

Plaintiffs first filed the Varsity Brands lawsuit in 2020, alleging that defendants violated federal antitrust laws and various state consumer protection laws by monopolizing or conspiring to monopolize cheerleading competitions, cheerleading camps, and cheerleading apparel markets.

Defendants allegedly achieved this monopoly by strategically acquiring competitors and entering into exclusive contracts with All Star Gyms and schools. They also worked with All Star Cheer’s governing body to suppress competition, which allowed them to charge inflated prices for products and services, the antitrust lawsuit alleges against the cheerleaders.

The defendants pleaded not guilty to any wrongdoing, but agreed to a Varsity Brands settlement to resolve the dispute.

Settlement of Varsity Brands lawsuit to provide monetary relief

If the settlement is finalized, the recipients will be persons and entities that indirectly paid Varsity Brands or any of its affiliates certain fees and expenses related to participation in Varsity Cheer competitions, Varsity Cheer clothing, Varsity Cheer Camp fees or Varsity Cheer accommodations Competitions between December 10, 2016 and March 31, 2024.

Class members in some states may also be entitled to cash relief.

Under the terms of the Varsity Brands lawsuit settlement, defendants agreed to discontinue some of their allegedly anti-competitive conduct, such as conditioning athletes’ eligibility to compete in the championships on their participation in cheer camps run by Varsity.

The last fall, a Tennessee federal judge approved it $43.5 million cheerleading antitrust settlement between Varsity Brands and a California 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 United States District Court for the Western District of Tennessee.

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