Fusion Elite All Stars v. Varsity Brands et al. (2020)
Background: Filed in July 2023, Fusion Elite All Stars, et al. v. Varsity Brands, et al is an antitrust, class-action suit filed on behalf of a Californian cheerleading gym against the U.S. All Star Federation (USASF) — the largest member organization for All Star cheer and dance — and Varsity Brands, a multibillion-dollar U.S. apparel company that specializes in youth sports products.
The suit sought redress and relief for defendants colluding to reduce competition through buyouts and exclusionary contracts, enabling Varsity Brands to control 90 percent of the All Star Competition market and 80 percent of the All Star Apparel market and drive up prices for cheer gyms, cheerleaders, and spectators.
Impact: A $43.5 million settlement agreement was reached in 2023. Defendant Varsity Brands agreed to limit the number of events a gym must attend to qualify for its discounts and rebates through 2028, and agreed that its board members would not also serve on the USASF board, to reduce the opportunity for collusion to continue or begin again.
Media coverage: Reuters, American Economic Liberties Project, Cheer Daily
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