- Who: Varsity Brands has agreed to pay $43.5 million to resolve claims brought against it and the U.S. All Star Federation (USASF) by California cheerleading gym Fusion Elite All Stars
- Why: Fusion claimed Varsity and USASF were unlawfully working together to monopolize the cheerleading competition and apparel market.
- Where: The class action lawsuit was filed in California federal court and later transferred to Tennessee federal court.
- The Settlement: Varsity Brands has agreed to pay $43.5 million to resolve claims the cheerleading equipment and apparel company worked with a competitive cheer and dance governing body to create a monopoly in the cheer competition and apparel market. The class action settlement resolves claims brought by plaintiff Fusion Elite All Stars, a California cheerleading gym, against Bain Capital-backed Varsity Brands and U.S. All Star Federation (USASF) in May 2020. Fusion claimed Varsity controls around 90% of the competition market and 80% of the apparel market in the US for cheerleading, arguing it was able to do so by allegedly making exclusionary agreements with some of the largest cheer gyms. Varsity was also accused of leveraging its control with the governing bodies in the cheer industry, including by allegedly requiring all-star gyms to be USASF members
to compete in certain competitions.
- Who is involved: A trio of Varsity companies, including Varsity Brands LLC, Varsity Spirit LLC, and Varsity Spirit Fashion & Supplies LLC, have agreed to make the cash payments that will total $43.5 million in settlement funds.
- Other Restitution: Varsity and USASF, meanwhile, have also agreed to “institute significant prospective relief that unwinds some of the key allegedly anticompetitive conduct at issue in this case.” Fusion has agreed to dismiss the litigation “with prejudice and release Defendants and related parties” in exchange for the “valuable relief” that followed more than two and a half years of litigation, according to a motion for preliminary approval.
- THE CASE IS: Fusion Elite All Stars, et al. v. Varsity Brands LLC, et al., Case No. 2:20-cv-02600, in the U.S. District Court for the Western District of Tennessee
VARSITY BRANDS ANTITRUST SETTLEMENT CASE SUMMARY
If you owned or operated an All Star Cheerleading Gym at anytime between May 26th 2016, thru March 15th 2023 in the United States, and Directly paid Varsity Brands registration or related fees to participate In Varsity All Star Events, you could be eligible to receive a portion of a $43.5 Million Settlement.
FILING DEADLINE: TBD
Slateshore Recovery (SSR) is a class action claims management consultant; we are not a court appointed claims administrator or class counsel. If you hire SSR, SSR will work within your guidelines to manage the claims process: SSR will notify you when we believe that you may be eligible to participate in valuable settlements; we will take action to assure that all of your eligible business units (e.g., subsidiaries, divisions, acquisitions and divestitures) are included in the claims process; to reduce the support needed from your in-house staff, SSR will provide advice on what, if any, documents need to be collected and maintained, and, when requested, will assist in that effort; when required documents are not available or are too burdensome to collect, SSR will attempt to develop innovative alternatives to satisfy documentation requirements and then negotiate on your behalf to obtain approval of those alternatives; SSR will prepare, assemble and submit your claim package, and manage it throughout the claims processing phase, including working with you to address any concerns or questions the claims administrator may have; SSR will provide regular updates on the recovery process; SSR will review your payment to assure that it has not been under calculated; and SSR will follow up with you to assure that your recovery check is deposited. SSR’s recovery specialists are always available to answer any questions you may have.How to Retain SSR: If you wish to hire SSR to file and manage a claim on your behalf, you must return aDocu signed copy or hard copy by fax, mail or email of our Authorization Agreement. Before doing so please review all terms carefully so you understand your rights. How to Retain SSR: If you wish to hire SSR to file and manage a claim on your behalf, you must return a Docu signed copy or hard copy by fax or mail of our Authorization Agreement. Before doing so please review all terms carefully so you understand your rights.
How to Retain SSR
If you wish to hire SSR to file and manage a claim on your behalf, you must return a Docu signed copy or hard copy by fax or mail of our Authorization Agreement. Before doing so please review all terms carefully so you understand your rights.