Fusion Elite All Stars, et al. v. Varsity Brands, LLC, et al.

The Court has preliminarily approved a proposed settlement (“Settlement”) involving payment of $43,500,000.00 (over a two-year period) to classes of All Star Gyms and Spectators of Varsity All Star Events and also provides for changes in conduct to resolve a class action lawsuit called Fusion Elite All Stars, et al. v. Varsity Brands, LLC, et al., Case No. 2:20-cv-02600-SHL-tmp, pending in the United States District Court for the Western District of Tennessee (“Action”).

This Action was brought by certain All Star Gyms and Spectators of All Star Events (“Plaintiffs”). The Action alleges that Defendants, Varsity Brands, LLC; Varsity Spirit, LLC; Varsity Spirit Fashions & Supplies, LLC (collectively, “Varsity”) obtained and maintained control over the All Star Cheerleading (“All Star Cheer” or “All Star”) events marketplace (i.e., “All Star Events” or “Events”), through acquisitions of rivals, purported exclusive dealing agreements, and purported collusion with U.S. All Star Federation, Inc. (“USASF”) (Varsity and USASF together, “Defendants”) in violation of the antitrust laws. The Action further alleges that this anticompetitive conduct caused Varsity to (a) overcharge Gyms for participation in Varsity All Star Events, and (b) overcharge Spectators to watch Varsity All Star Events. Defendants believe that Plaintiffs’ claims lack merit, that their conduct was pro-competitive, not anticompetitive, that Defendants have valid defenses to Plaintiffs’ allegations, and that Plaintiffs’ claims would have been rejected prior to trial, at trial, or on appeal.

The Settlement is for the benefit of the following two groups of entities or persons (“Settlement Classes”):

Gym Class. All entities that paid registration or related fees and expenses directly to Varsity to participate in Varsity All Star Events from May 26, 2016 through March 15, 2023 (the “Class Period”).

Spectator Class. All persons who paid entrance (admission) or other fees and expenses directly to Varsity to observe Varsity All Star Events during the Class Period.

Excluded from the Settlement Classes are Defendants, their parent companies, subsidiaries, affiliates, franchisees, officers, executives, and employees; any entity that is or has been partially or wholly owned by one or more Defendants or their respective subsidiaries; States and their subdivisions, agencies and instrumentalities; and any judicial officer presiding over this matter and his or her staff, except that officers of USASF who are not employees of any of Defendants, their parent companies, subsidiaries, affiliates, or franchisees shall not be excluded from the Settlement Classes.

The Court has approved as lawyers for the Settlement Classes (“Settlement Class Counsel”) the following:

Eric L. Cramer
BERGER MONTAGUE PC
1818 Market Street, Suite 3600
Philadelphia, PA 19106
Telephone: (215) 875-3000

Karin E. Garvey
DICELLO LEVITT LLC
485 Lexington Avenue, Suite 1001
New York, NY 10017
Telephone: (646) 933-1000

Victoria Sims
CUNEO GILBERT & LADUCA, LLP
4725 Wisconsin Avenue NW, Suite 200
Washington, DC 20016
Telephone: (202) 789-3960

• The Settlement offers cash payments to members of the Gym Class and Spectator Class who file or approve valid timely claim forms later in the process.
• The Notice has important information. It explains the Settlement and the rights and options of members of the Settlement Classes in this class action lawsuit.
• For the full terms of the Settlement, you should look at the Settlement Agreement.
• Please check this website for any updates relating to the Settlement or the Settlement approval process.

LEGAL RIGHTS and OPTIONS

If you are a member of the Gym Class or the Spectator Class, your legal rights and options are described in this section. You may:

Exclude Yourself: You may request to be excluded from the Gym Class or Spectator Class. This is the only way you can be part of another lawsuit that asks for money for claims arising out of the facts alleged in this Action. If you timely request exclusion (“opt out”), you will no longer be part of any of the Settlement Classes, and you will not be able to get any money from this Settlement. If you would like to opt out, your exclusion request must be postmarked or received by August 3, 2023. See FAQ 12 for more information.

Object: If you do not agree with any part of this Settlement, or you do not agree with the requested award of attorneys’ fees, expenses and/or service awards for the representative Plaintiffs you may:

• Write to the Court to explain why (see FAQ 16), and
• Ask to speak at the Court hearing about either the fairness of this Settlement or about the requested attorneys’ fees, expenses, or service awards. (see FAQ 22).

File a Claim: This is the only way to get money from the Settlement. You must file a timely and valid claim at a later point in the process. See FAQ 9 for more information.

Do Nothing: To remain in either Settlement Class, you need do nothing now. However, at a later time, if the Settlement is approved, in order to receive money from the lawsuit, you will need to file a claim form. See FAQ 23 for more information.

Deadlines: See FAQs 12 and 16 for more information about rights and options and all deadlines.