In a significant development for the cheerleading events industry, Varsity Spirit, along with its current and former private equity owners, has reached a settlement agreement of $82.5 million to resolve a class action lawsuit. The lawsuit, filed more than three years ago in Memphis federal court, accused the cheerleading events promoter of overcharging athletes, reported Reuters.
According to attorneys for the plaintiffs, the proposed accord aims to address allegations that Varsity and affiliated entities engaged in practices that purportedly excluded competitors from the cheer industry, resulting in inflated prices that violated U.S. antitrust law.
Both current owner Bain Capital and former owner Charlesbank Capital, among others, were defendants in the lawsuit and have agreed to participate in the settlement. Despite the settlement, all defendants have maintained their denial of any wrongdoing.
Read more: Class Action Settlement Reached in Cheerleading Monopoly
The terms of the settlement, subject to court approval, have not specified the individual contributions from each defendant towards the $82.5 million total, as reported by Reuters.
In response to the settlement, Varsity, headquartered in Memphis, issued a statement expressing its satisfaction with the resolution. The company affirmed its confidence in having acted appropriately and in the best interest of the sport. Bain Capital and the plaintiffs involved in the lawsuit declined to comment, while Charlesbank Capital did not immediately respond to requests for comment.
This settlement follows a prior resolution reached by Varsity last year, in which it settled a related case with gyms, spectators and other direct purchasers for $43 million, also reported by Reuters.
Source: Reuters
Featured News
Romania Approves Acquisition of Wind Plants by Alive Wind Power One
Jun 10, 2024 by
CPI
Cognizant Technologies to Acquire Digital Engineering Firm Belcan for $1.3 Billion
Jun 10, 2024 by
CPI
Turkish Competition Authority Fines Google $14.85 Million Over Hotel Search Practices
Jun 10, 2024 by
CPI
Google’s AI Search Engine Threatens Media Industry Amid Antitrust Concerns
Jun 10, 2024 by
CPI
Germany Approves Carmakers’ Wireless Tech Alliance
Jun 10, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Healthcare Antitrust
May 31, 2024 by
CPI
AI and Antitrust Considerations in U.S. Health Care
May 31, 2024 by
CPI
Uncertainty in the Bottom Line: New Antitrust Scrutiny and Enforcement in Private Equity Transactions
May 31, 2024 by
CPI
Effecting M&A Diligence When Competitors Are Involved
May 31, 2024 by
CPI
AI, Pharmaceutical Sector, and EU Competition Law and Policy: What Does the Future Look Like?
May 31, 2024 by
CPI