Varsity Brands Accused of Competitive Cheerleading Monopoly (1)

Varsity Brands LLC was hit with an antitrust lawsuit in California federal court claiming it’s conspiring with competitive cheerleading’s governing body to control the multibillion-dollar sport and monopolize the lucrative related apparel industry.

The proposed class action also targets U.S. All Star Federation Inc., which promotes and sets the rules for “All-Star Cheer,” a popular form of standalone, rather than sideline, cheerleading. It was filed Tuesday in the U.S. District Court for the Northern District of California by a gym that sponsors a team.

The suit accuses Varsity—which Bain Capital acquired in 2018 for $2.5 billion—of gobbling up rivals large ...