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.
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.
While this list covered large cheerleading demographics such as California, Florida, and New York, it excluded Texas, Georgia, and Alabama — states with some of the nation’s largest cheerleader populations. Their exclusion significantly limited participation in the settlement.
Structure of the Distribution
The Net Settlement Fund is divided into three pools, reflecting the types of purchases at issue:
- Competitions (53%) — registration and participation fees.
- Camps (26%) — Varsity camp fees.
- Apparel (21%) — uniforms and related merchandise.
Each pool is allocated proportionally by “Annual Shares,” calculated based on the number of years a claimant made purchases in that category. Individual payouts are determined by multiplying the share by each claimant’s years of eligible purchases.
Total Settlement Amount: $82,500,000
+ Interest Earned (through Aug 2025): $1,060,293
+ Estimated Additional Interest (through Oct 2025): $290,000
= Gross Available Funds: ~$83.85 million
Deductions
- Attorneys’ Fees: $27,500,000
- Litigation Expenses: $7,450,156.47
- Service Awards (Class Representatives): $125,000
- Tax Payments (to date + estimated): $310,000
- Tax Preparation Fees: $12,600 (paid + future estimate)
- Notice & Administration Expenses (Angeion through July 2025): $526,135.46
- Future Admin Fees (estimate): $17,964
- Reserve for Unexpected Costs: $200,000
Net Settlement Fund Available for Claimants
$47,708,437.40
Claims Process and Outcomes
The administrator, Angeion Group, oversaw the claims process beginning in January 2025. Notices were distributed via mail, email, online advertising, and outreach at events.
Of the 8,875 claims filed:
- 5,831 were approved as valid.
- 3,044 were rejected, primarily due to missing documentation, duplicate submissions, claims by ineligible entities such as gyms or schools, residency in excluded states, or purchases outside the class period (December 10, 2016 – March 31, 2024).
Payments will be issued through checks and digital transfers, depending on claimant preference. The administrator will continue to manage inquiries, reissued payments, and updates through the official website (www.CheerAntitrustSettlement.com).
The settlement, reached in late 2024, resolved litigation first filed in 2020. While the number of approved claims is relatively small, the distribution provides financial recovery for families and organizations in eligible states and concludes a multi-year dispute over competition in the cheerleading market.
Follow Cheer Daily for continued coverage as settlement payments begin.
