Case Number: No. 2:20-cv-02600-SHL-cgc

Practice Area: Antitrust

Case Status: Settled

Settlement Amount: $43.5 million

Court: United States District Court for the Western District of Tennessee

Berger Montague serves as Co-Lead Class Counsel representing classes of All-Star Cheer Gyms and Spectators of All Star Cheer Events in antitrust litigation against Varsity Brands, LLC and its subsidiaries (collectively “Varsity”) and U.S. All-Star Federation, Inc. (“USASF”).

Led by Eric L. Cramer of Berger Montague, in late 2022, the plaintiffs’ negotiation team reached a settlement of the matter for $43.5 million in cash plus valuable prospective relief that would unwind some of the key conduct that the plaintiffs had alleged Varsity had used to monopolize the market for All Star Cheer Events in the United States. The court preliminarily approved the settlement and scheduled a final approval hearing. Prior to the settlement, Berger Montague led the team that defeated a motion to dismiss, oversaw months of fact and expert discovery, and achieved this result without the benefit of any governmental investigation or prosecution.

All-Star Cheer is an elite, competitive type of cheerleading that is focused solely on competitions between teams of cheerleaders (“All-Star Competitions”), as opposed to cheering to support another athletic team from the sidelines.

The plaintiffs alleged that Varsity, in combination with USASF, acquired, enhanced, and maintained monopoly power in the All-Star Event market through an unlawful scheme consisting of exploiting its substantial market power to (a) impair and then buy up any actual or potential rivals that could possibly threaten Varsity’s dominance in certain alleged relevant markets, (b) impose exclusionary agreements on All-Star Gyms that require the Gyms to agree, on their own behalf and on behalf of their members, to patronize Varsity exclusively (or nearly exclusively), and (c) leverage its control of All Star Cheer’s governing bodies, including USASF, to impair actual and potential rivals. The plaintiffs alleged that, as a result of Varsity’s and USASF’s unlawful and anticompetitive conduct, the plaintiffs and classes paid higher prices for All-Star Events than they would have paid absent the alleged anticompetitive conduct.

If you or your company has been harmed by anticompetitive conduct or any conduct that you believe violates the antitrust laws, please contact Berger Montague.

About Berger Montague

Berger Montague is a national law firm focusing on complex civil litigation in federal and state courts throughout the United States. For over half a century, Berger Montague has played lead roles in consequential, precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago, Minneapolis, San Diego, San Francisco, Toronto, and Washington, D.C.

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