A class action lawsuit brought by Bain Capital, its cheer business Varsity Brands, and Varsity’s former users has been settled with$ 82.5 million to settle it. The plaintiffs claim that the accused consciously monopolized or conspired to control the praise competition, camps, and clothing markets. Plaintiffs ‘ attorneys will get a third of the colony number —$ 27.5 million —plus$ 9.2 million in dispute charges, according to court papers this year.
The parties gave a copy of the proposed settlement to the federal judge overseeing the case on Monday, which comes almost a year after Varsity agreed to pay$ 43 million to settle another antitrust case, Fusion Elite All Stars, et al. v. Varsity Brands, LLC et al., filed by a proposed class of rival all- star cheerleading gyms. In October, the court approved that agreement.

The settlement in Jessica Jones, et al., v. Varsity Brands, LLC, et al., was agreed to in principle last month, following a third round of mediation in the case, which was originally filed in 2020. It comes at a time when Bain is rumored to be actively looking to sell Varsity Brands, which includes Varsity Spirit and BSN Sports. Bain acquired Varsity Brands in 2018 for$ 2.5 billion. The proposed settlement also includes the U.S. All-Star Federation ( USASF), the club cheer sanctioning body established by Varsity, as well as the former owners of Varsity ( Charlesbank Capital Partners and company founder Jeff Webb ).
In an email statement, a Varsity spokesperson said the company was “pleased” to have reached an agreement. The spokesperson continued,” We are confident that Varsity Spirit acted appropriately and in the best interest of our sport.”
A class that is still requesting certification would receive monetary relief in two installments, according to a plaintiffs ‘ memorandum that was submitted together with the settlement agreement: a class that is seeking injunctive relief. The latter includes any indirect purchaser who paid Varsity for registration in its cheer competitions or camps, or purchased cheer apparel, from Dec. 10, 2016, through March 31, 2024.
The defendants would be required to remit the final payment within 30 days of the settlement’s final decision’s acceptance that could no longer be challenged. The first installment would be capitulated to$ 2.5 million.
The class representatives in the case—Jessica Jones, Christina Lorenzen and Amy Coulson—would respectively be paid$ 50, 000,$ 25, 000 and$ 25, 000 from the settlement fund. The attorneys ‘ fees would be deducted from the remaining settlement funds, leaving out the rest of the class members.
Varsity Spirit has agreed to end some programs that the plaintiffs claim caused market competition in addition to the financial terms. For example, cheerleaders have previously been required to attend Varsity- run cheer camps to be eligible to compete in Varsity’s year- end national championships. Per the settlement, Varsity would no longer make this a requirement.

Similarly, the settlement’s prospective relief would address Varsity’s” Stay Smart” policy that requires cheer teams participating in Varsity events to stay at certain area hotels, which the plaintiffs alleged Varsity received kickbacks from. According to the settlement, Varsity has agreed that it” will not require participants in 35 % or more of its Cheer Competitions to stay at Varsity- approved accommodations”.
Additionally, the USASF and Varsity’s alleged collusion is addressed in the settlement. Accordingly, the USASF has agreed not to share any information its event producer members deem confidential, including cheer competition schedules or attendance records. This builds on the potential relief negotiated in the Fusion case settlement, which limited Varsity’s involvement with the USASF board of directors and sanctioning committees.
Joseph Saveri, the lead plaintiffs ‘ lawyer, declined to comment beyond confirming the settlement had been reached. Saveri stated in an affidavit filed on Monday that the settlement “avoids the delay and uncertainty of continued protracted litigation against defendants, represented by many of the most qualified law firms in the United States,” even though he was confident in winning the trial, which was scheduled for July 8.