On June 18, 2024, Chief Judge Sheryl Lipman of the Western District of Tennessee granted preliminary approval of a settlement on behalf of parents of competitive cheer athletes. The settlement provides for a cash payment of $82,500,000 along with significant injunctive relief meant to promote competition in the competitive cheer market.
Varsity (collectively Varsity Brands, LLC, Varsity Spirit, LLC, and Varsity Spirit Fashion & Supplies, LLC) is by far the largest producer of competitive cheer competitions and camps, and the largest seller of cheer uniforms and equipment in the United States. It, along with its co-defendants U.S. All Star Federation, Inc. (USASF); Jeff Webb; Charlesbank Capital Partners LLC; Charlesbank Equity Fund VII, Limited Partnership; Charlesbank Equity Fund VIII, Limited Partnership; Charlesbank Equity Fund IX, Limited Partnership; Bain Capital Private Equity, LP; Bain Capital Fund XII, L.P.; Bain Capital Fund (DE) XII, L.P.; and Bain Capital Fund (Lux) XII, SCSp were accused of abusing Varsity’s market power to raise, fix, and stabilize the prices charged for Varsity competitions, camps, and apparel. As result of that abuse, class members paid higher prices for cheer competitions, cheer apparel, and cheer camps, as well as related goods and services. “This substantial settlement, along with the changes in Varsity conduct, will go a long way to compensating families and ensuring they are no longer taken advantage of when purchasing competitive cheer products for their athletes,” said Jason Hartley.
