Attorney General Raoul announces $82.5 million proposed settlement with Varsity Brands
Chicago – Attorney General Kwame Raoul today announced Illinois has joined an $82.5 million proposed antitrust settlement with Varsity Brands (Varsity). As a result, Illinois consumers who paid to participate in Varsity Brands’ cheer competitions or camps, or purchased Varsity apparel from Dec. 10, 2016 through March 31, 2024 will be eligible to receive recovery funds. Consumers must file claims to receive reimbursement, and Attorney General Raoul is encouraging people to sign up to receive more information.
“I am pleased with the revised settlement allocation plan that allows Illinois families to submit claims to be eligible for reimbursement,” Raoul said. “I will continue to work to ensure that Illinois residents have access to the recovery to which they are entitled when companies act unlawfully to charge them monopolistic prices.”
Earlier this year, an $82.5 million proposed class action antitrust settlement required Varsity Brands to pay individual consumers who participated in Varsity cheer competitions or camps or bought Varsity apparel. However, under the original proposed settlement’s allocation plan, Illinois purchasers would have received nothing. As a result of intervention by Attorney General Raoul’s office, the court approved a revised plan, which now allows Illinois families to be eligible to recover funds. The court will approve a claim form and set a deadline to submit a claim. Consumers must file a claim to be eligible for recovery funds.
Attorney General Raoul encourages Illinois families that paid for cheer competitions and camps or purchased cheer apparel between Dec. 10, 2016, and March 31, 2024 to provide their contact information at www.CheerAntitrustSettlement.com to be notified about the procedures for submitting a claim for compensation when the filing period begins. Illinois purchasers who want to file objections to the proposed settlement or requests to be excluded from the settlement must do so by Sept. 26, 2024.
Consumers should claim 100% of their payments for cheer competitions, cheer camps and apparel; however, they may not receive a full refund.
The settlement resolves a class action lawsuit alleging Varsity had engaged in a concerted exclusionary scheme to acquire, maintain and enhance its monopoly power in the markets for cheer competitions, cheer camps and cheer apparel. The lawsuit alleged Varsity maintained more than 75% of each of these product markets and leveraged its monopoly power to stifle competition. This allowed Varsity to charge Illinois families higher monopolistic prices.
Defendants in the case include Varsity Brands LLC; Varsity Spirit LLC; Varsity Spirit Fashion & Supplies LLC; U.S. All Star Federation Inc.; 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 LP; Bain Capital Fund (DE) XII LP; Bain Capital Fund (Lux) XII SCSp.
Assistant Attorney General Richard Schultz handled the case for Attorney General Raoul’s Antitrust Bureau.