CGL settles monopolization case against Varsity Brands for $43.5 million.
CGL has settled a Section 2 monopolization case against Defendants Varsity Brands, LLC, Varsity Spirit, LLC, Varsity Spirit Fashion & Supplies, LLC (collectively, “Varsity”), and U.S. All Star Federation, Inc. (“USASF”) for $43.5 million and filed preliminary approval papers today.
This litigation concerns the All Star Cheer industry and was filed without the aid of any government investigations, based on the initiative of small gyms who wanted change in the industry. In addition to a monetary settlement, the parties negotiated prospective relief that both renders Varsity’s rebate program more competitive and unwinds certain connections between Varsity and USASF.
This settlement was achieved after 2.5 years of hard-fought litigation.