Illinois Attorney General Kwame Raoul has secured the state’s inclusion in an $82.5 million proposed antitrust settlement with Varsity Brands, a major player in the cheerleading industry. This settlement addresses allegations that Varsity Brands engaged in monopolistic practices to dominate the markets for cheer competitions, camps, and apparel, thereby inflating prices for consumers. The class action lawsuit claimed that Varsity maintained more than 75% of these markets and used its position to stifle competition, leading to higher costs for Illinois families.
The settlement, which covers payments made between December 10, 2016, and March 31, 2024, initially excluded Illinois purchasers. However, due to Attorney General Raoul’s efforts, Illinois residents are now eligible to file claims for reimbursement. This marks a significant victory for Illinois consumers, who are encouraged to prepare for the upcoming claim process. Although consumers can claim 100% of their payments, the final reimbursement may not equal a full refund.
Attorney General Raoul is urging those who participated in Varsity’s cheer competitions, attended camps, or purchased apparel during the specified period to stay informed about the claim submission process. The court is expected to approve a claim form and set a filing deadline soon. Consumers who wish to file objections or requests to be excluded from the settlement must do so by September 26, 2024.
This settlement includes multiple defendants associated with Varsity Brands, including related entities and investment firms such as Charlesbank Capital Partners and Bain Capital Private Equity. The resolution of this case represents a critical step in holding companies accountable for anti-competitive practices that harm consumers.
