Labaton Sucharow LLP Files Antitrust Class Action Lawsuit Against Varsity and USASF

NEW YORK, NY / August 27, 2020 -- Labaton Sucharow LLP (“Labaton Sucharow”) announces that on August 25, 2020, it filed a complaint, captioned Radek et al v. Varsity Brands, LLC et al No. 2:20-cv-02649 (W. D. Tenn.) on behalf of the plaintiffs and all others similarly situated against Defendants Varsity Brands, LLC (“Varsity Brands”), Varsity Spirit, LLC (“Varsity Spirit”), Varsity Spirit Fashion & Supplies, LLC (“Varsity Fashion”) (collectively, “Varsity”), and U.S. All Star Federation, Inc. (“USASF”) (collectively with Varsity, “Defendants”), for claims under the Sherman Act to recover damages and injunctive relief for the substantial injuries they and others similarly situated have sustained arising from Defendants’ anticompetitive conduct in the All Star cheerleading space.

All Star Cheer is an elite, competitive type of cheerleading. All Star athletes belong to All Star Gyms, wear All Star Apparel, and compete in All Star Competitions. In All Star Cheer, competitions are everything. For athletes, winning competitions is the goal: it is the gateway to championships, glory, and possibly even scholarships. For All Star Gyms, athlete recruitment and retention depends on their ability to win All Star Competitions. For event producers, team attendance is their profit model. And for Varsity, control of the All Star Competition and All Star Apparel Markets allows it to extract monopoly rents in many different ways.

After swallowing up competitors nationwide, Varsity now dominates the market for All Star Competitions in the United States. Varsity and All Star Cheer’s governing body—USASF, which Varsity also controls—have conspired to maintain control of the All Star Competition Market by erecting barriers to entry that prevent non-Varsity event producers from entering the market and make it difficult for non-Varsity affiliated All Star Gyms to effectively compete. Varsity has also leveraged its control of the All Star Competition Market to dominate the All Star Apparel Market by effectively requiring athletes to be dressed in Varsity apparel from “bow to toe” in order to have a chance at winning competitions.

The Action asserts claims under the Sherman Act on behalf of persons or entities who purchased (a) registration, entrance, or other fees and expenses associated with participation by an All Star Team or Cheerleader in one or more All Star Competitions; and/or
(b) All Star Apparel from Varsity or any Varsity subsidiary, beginning as early as August 25, 2016. The Action seeks to restrain Defendants’ anticompetitive conduct and to pursue damages to compensate those who have overpaid and continue to overpay.

If you purchased registrations or incurred expenses associated with participation by an All Star Team or cheerleader in an All Star Competition or purchased All Star Apparel from Varsity, you may be a member of the Class.

If you have any questions about this lawsuit, you may contact Labaton Sucharow partner Greg Asciolla at (212) 907-0827 or gasciolla@labaton.com or partner Karin Garvey at (212)-907-0844 or kgarvey@labaton.com.

Labaton Sucharow represents businesses, investors, and consumers in challenges to anticompetitive conduct taking place in the United States and abroad. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Our offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at www.labaton.com.

View a copy of the complaint here.