Bain’s Varsity Brands Ordered to Face Cheerleading Monopoly Case

Bain Capital LP subsidiary Varsity Brands LLC must face antitrust litigation over its alleged scheme to dominate “All Star Cheer,” the leading form of standalone competitive cheerleading, by conspiring with a standards-setting organization it controls, a federal judge in Memphis, Tenn., ruled.

Judge Sheryl H. Lipman let the proposed class action move forward Thursday in the U.S. District Court for the Western District of Tennessee with claims that Varsity gained monopoly power by gobbling up independent contest sponsors and imposing exclusive terms on gyms that organize cheer teams.

“Plaintiffs have alleged a pattern of acquiring market share and then raising ...