Varsity Brands has agreed to pay $43.5 million to settle an antitrust lawsuit brought on behalf of a class of all-star cheerleading gyms, according to Reuters.
Plaintiffs’ lawyers in a filing on Friday in US District Court for the Western District of Tennessee revealed the proposed deal resolving prospective class action claims against Varsity Brands and two affiliated business entities, including Memphis-based Varsity Spirit.
Bain Capital Private Equity bought Varsity Brands in 2018 for $2.5 billion, according to CNBC. Bain was not a defendant in the case.
The lawsuit was filed in 2020 by gyms that register teams participating in “All Star Cheer” events that Varsity produces. The events involve short performances featuring “pyramids,” tumbling and other components. Plaintiffs alleged Varsity used “exclusionary contracts and anticompetitive loyalty programs.”