Varsity Brands has reached a settlement with the latest crop of plaintiffs suing the cheerleading juggernaut over alleged antitrust violations, resolving the case just two weeks before it was set to go before a federal jury in Texas.
In a two-page motion filed this week with the U.S. District Court for the Northern District of Texas, the Open Cheer & Dance Championship Series and Deep South Cheer informed the court that they had entered a confidential settlement with Varsity that would result in the company’s dismissal from the suit.
In a subsequent order Wednesday, U.S. District Court Judge Matthew J. Kacsmaryk directed the plaintiffs to file a stipulation of dismissal by next week and to continue mediating their remaining claims with the U.S. All Star Federation, the Varsity-backed sanctioning body for competitive cheerleading and lone remaining co-defendant in the case.
Two other organizations—USA Cheer and the International All Star Foundation—were previously dismissed from the lawsuit.
The settlement marks the fourth consecutive time Varsity has avoided a jury ruling on a suit alleging its business practices amounted to illegal price-fixing, effectively closing a five-year chapter of non-stop antitrust litigation defense.
