We’ve got some important news that could directly impact many families in the cheerleading community. If you’ve paid Varsity for cheer competitions, camps, or apparel through a gym or school, there’s a significant $82.5 million settlement that you might be eligible for. Let’s dive into the details of the Jones, et al. v. Varsity Brands, LLC, et al. case (Case No. 2:20-cv-02892) and what it means for you.
We’ve gotten a lot of questions about an email notice that has recently started to go out to our readers.
What’s the Lawsuit About?
The lawsuit was initiated by families of competitive cheer athletes. They claimed that Varsity Brands engaged in unfair practices to control the All Star Cheer and school cheer events market. Here’s what they alleged:
- Acquisitions of Rivals: Varsity bought out competitors to dominate the market.
- Exclusive Dealing Agreements: Contracts forced gyms and schools to exclusively use Varsity products and services.
- Collusion with USASF: Working with the US All Star Federation to maintain their market power.
- Overcharging: These practices allegedly led to inflated prices for competitions, camps, and gear.
Varsity denies these allegations, stating that their practices were competitive and not anticompetitive. However, to avoid the cost and uncertainty of a trial, both sides agreed to a settlement.
Who is Eligible for a Claim?
If you or your family paid indirectly through a gym or school for Varsity cheer competitions, camps, or apparel between December 10, 2016, and March 31, 2024, you might be eligible to file a claim and receive part of the settlement.
Key Dates You Need to Know
- Exclusion Deadline: September 26, 2024
- Objection Deadline: September 26, 2024
- Fairness Hearing: November 22, 2024, at 10:00 AM CST
Your Options: What Can You Do?
Here’s a breakdown of your rights and options in this settlement:
- Submit a Claim Form:
- Deadline: To be determined after final court approval.
- Process: Instructions will be available on the settlement website.
- Why: This is the only way to receive a payment from the settlement.
- Exclude Yourself:
- Deadline: Postmarked by September 26, 2024.
- Impact: You will not receive any payment from the settlement but can sue Varsity independently for damages.
- Note: You cannot opt out of the Injunctive Relief Class, which means you will still benefit from changes in Varsity’s business practices.
- Object:
- Deadline: Received by September 26, 2024.
- Process: Write to the court explaining why you oppose the settlement.
- Why: To voice any concerns or disagreements with the proposed terms.
- Attend the Hearing:
- Date: November 22, 2024.
- Purpose: Speak in court about the fairness of the settlement.
- Do Nothing:
- Impact: You will not receive any payment and give up your rights to sue Varsity for these claims in the future.
Settlement Details: What Does It Include?
The settlement creates an $82.5 million fund to be distributed to eligible claimants. Here’s how the funds will be allocated:
- Competitions: 53% of the Net Settlement Fund
- Camps: 26% of the Net Settlement Fund
- Apparel: 21% of the Net Settlement Fund
In addition to monetary compensation, Varsity has agreed to several business changes to promote fair competition and transparency, such as not requiring exclusive purchasing arrangements and making credentialing programs more accessible.
How to Get Started
- Visit the Settlement Website: Go to CheerAntitrustSettlement.com for complete details.
- Review Important Documents: Read the full Settlement Agreement and other key documents available on the website.
- Stay Informed: Follow updates to ensure you don’t miss critical information about the claims process.
This settlement is a big win for the cheer community, aiming to bring fairer practices to the industry and provide compensation to those affected by the alleged anti-competitive behavior. Make sure to take action if you’re eligible, and stay tuned for further updates.
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