Varsity Brands $82,500,000 Antitrust Violations Settlement

If you indirectly paid Varsity, such as through a gym or school, to participate in a Varsity cheer competition or camp, or to buy Varsity cheer clothing, you may be eligible to claim a portion of an $82.5 million class action settlement.

Varsity Brands, LLC has agreed to pay $82,500,000 to settle a class action lawsuit for alleged antitrust violations, including obtaining and maintaining control over the All Star Cheer and school cheer events marketplace through acquisitions of rivals, exclusive dealing agreements, and collusion with USASF.

Can I Claim an Award?

To be eligible for a monetary award, you must be a member of the "Damages Class." Otherwise, there are awards in the form of injunctive relief.

Damages Class

The Damages Class includes all natural persons and entities in the below states who indirectly paid Varsity or any Varsity subsidiary or affiliate from December 10, 2016, through March 31, 2024, for registration, entrance, or other fees and expenses associated with participation in one or more Varsity Cheer Competitions, Varsity Cheer Apparel, Varsity Cheer Camp Fees, or accommodations at one or more Varsity Cheer Competitions.

• Class Period: Individuals and entities in specific states who made eligible payments between December 10, 2016, and March 31, 2024.
• Eligible States:
• Arizona
• Arkansas
• California
• Connecticut
• District of Columbia
• Florida
• Hawaii
• Idaho
• Iowa
• Kansas
• Maine
• Massachusetts
• Maryland
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Mexico
• New York
• North Carolina
• North Dakota
• Oregon
• Rhode Island
• South Dakota
• Tennessee
• Utah
• Vermont
• Washington,
• West Virginia
• Wisconsin

Injunctive Relief Class

The Injunctive Relief Class includes all natural persons and entities in the United States who indirectly paid Varsity or any Varsity subsidiary or affiliate from December 10, 2016, through March 31, 2024, for registration, entrance, or other fees and expenses associated with participation in one or more Varsity Cheer Competitions, including registration fees to USASF, Varsity Cheer Apparel, Varsity Cheer Camp Fees, or accommodations at one or more Varsity Cheer Competitions, including registration fees to USASF.

How Much Can I Claim?

Defendants have agreed to create an $82,500,000 fund to be distributed to Damages Class Members who send in valid claim forms.

The money in this Settlement Fund will also be used to pay the cost of Settlement administration and notice, applicable taxes on the Settlement Fund and any other related tax expenses, money awards for Class Representatives for their service on behalf of the Class, and attorneys’ fees and reimbursement of expenses for Settlement Class Counsel. After these amounts are deducted, the remainder is the Net Settlement Fund to be distributed to:

• Competitions: 53% of the Net Settlement Fund
• Camps: 26% of the Net Settlement Fund
• Apparel: 21% of the Net Settlement Fund

Payments from the Net Settlement Fund in each pool (Competitions, Camps, Apparel) will be calculated on a pro rata basis from the number of years an eligible Claimant made valid purchases in each category.

If the claims submitted for a particular pool are disproportionate to the other pools, the Settlement Administrator has authority to revise the allocations to align with the claims submitted.

Is Proof Required to Claim an Award?

Yes, proof is required to claim an award.

• Proof of participation in an All Star Gym or school cheer team, such as an Athlete’s All Star Gym invoice.
• Additional claim documentation and/or information may be required after you submit your Claim Form, including records relating to purchases claimed, events attended, or registered participants.

How to Claim Your Award

To claim your award, you can file a claim online when the claim portal opens. Alternatively, you can submit the claim form by mail.

Settlement Fund Breakdown

The settlement amount of $82,500,000 will be used to pay Damages Class Members who submit valid claims, as well as the cost of Settlement administration and notice, applicable taxes on the Settlement Fund and any other related tax expenses, money awards for Class Representatives for their service on behalf of the Class, and attorneys’ fees and reimbursement of expenses for Settlement Class Counsel.

The breakdown of the Settlement Fund is as follows:

• Settlement Fund: $82,500,000
• Attorneys’ Fees: Up to $27,500,000
• Reimbursement of Expenses: $9,250,249.14
• Class Representatives’ Awards: $50,000 each to Jessica Jones and Christina Lorenzen, and $25,000 to Amy Coulson

Important Dates

• Exclusion Deadline: September 26, 2024
• Fairness Hearing: November 22, 2024

Why is There a Class Action Settlement?

The class action settlement was reached to resolve allegations that Varsity Brands, LLC engaged in anticompetitive conduct, including obtaining and maintaining control over the All Star Cheer and school cheer events marketplace through acquisitions of rivals, exclusive dealing agreements, and collusion with USASF. Plaintiffs alleged that this conduct caused Varsity to overcharge for participation in competitive cheer competitions and camps and for apparel.

What Happens Next?

The next steps include the Court holding a Fairness Hearing on November 22, 2024, to decide whether to approve the Settlement. If the Settlement is approved, the Claim Form process will begin, and Damages Class Members will be able to submit their claims. Once all claims are validated and any appeals are resolved, payments will be distributed to eligible Class Members.