A federal judge has approved the final distribution of the $82.5 million settlement in the long-running antitrust case against Varsity Brands, LLC and related entities, marking a significant milestone for gym owners and families who filed claims.
Cheer Daily has confirmed that settlement payouts have begun, with six families reporting payments of $400, $8,000, $12,000 and $18,570.90. The $18,570.90 payment covered participation from 2016 to 2024 for one athlete with documentation.
On Feb. 12, Chief U.S. District Judge Sheryl H. Lipman of the U.S. District Court for the Western District of Tennessee granted the plaintiffs’ unopposed motion to approve the settlement administrator’s final report, authorizing payments to eligible class members.
The case, Jessica Jones et al. v. Varsity Brands, LLC et al., centered on allegations that Varsity and affiliated entities engaged in anticompetitive conduct within the All Star cheer market. The settlement received final approval in December 2024. The latest order clears the final procedural step before funds are distributed.
Settlement administrator Angeion Group reviewed 8,875 claims submitted by State Law Damages Class members. Of those, 5,831 claims were deemed valid and payable after review and a resubmission process for initially deficient claims.
The total settlement fund of $82.5 million included attorney fees of $27.5 million, litigation costs of more than $7.45 million, and service awards totaling $125,000 for named plaintiffs. Up to $2.5 million was set aside for administration costs, though actual administrative expenses came in significantly lower.
After fees, costs, and taxes, $47,708,437.40 will be distributed to approved claimants on a pro rata basis. The estimated average payment is $8,181.86. The highest payment is projected at $51,604.97, and the lowest at $334.67.
The court also approved withholding $200,000 to address any remaining disputes or unanticipated issues during distribution.
State Eligibility Narrowed the Pool
The settlement did not apply nationwide. Recovery was limited to residents of 33 states and the District of Columbia that allow indirect purchaser claims under state antitrust or consumer protection laws.
Eligible states included: Arizona, Arkansas, California, Connecticut, D.C., Florida, Hawaii, Idaho, Iowa, Illinois, Kansas, Maine, Massachusetts, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, and Wisconsin.
