Doe v. Varsity Brands, LLC

CourtDistrict Court, E.D. North Carolina
DecidedMarch 20, 2024
Docket5:22-cv-00430
StatusUnknown

This text of Doe v. Varsity Brands, LLC (Doe v. Varsity Brands, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Doe v. Varsity Brands, LLC, (E.D.N.C. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA WESTERN DIVISION Case No. 5:22-cv-00430-M JOHN DOE 1, Plaintiff, ORDER VARSITY BRANDS, LLC, et al., Defendants.

This matter comes before the court on the motions to dismiss filed by Defendants Chase Burris (“Coach Burris”) and Shawn Wilson (“Coach Wilson”) [DE 57] and U.S. All Star Federation, Inc. (““USASF”) (together, “Defendants”) [DE 82]. Defendants primarily argue that Plaintiff John Doe 1 (“Mr. Doe”) fails to state plausible claims to relief under the Child Abuse Victims’ Rights Act (““CAVRA”) and the Racketeer Influenced and Corrupt Organizations Act (“RICO”). The former arguably does not accommodate a liability theory based on the aiding and abetting of enumerated offenses, and the latter arguably does not allow Mr. Doe to stand on his alleged lost membership dues and fees and lost competitive ability to maintain suit. The Defendants also argue that Mr. Doe’s numerous state law claims are deficient and should be dismissed. For the following reasons, the court grants in part and denies in part the pending motions. I. Background A. Factual Background Mr. Doe is a former youth cheerleader who alleges that he was sexually abused by several unnamed coaches and a choreographer while training at Defendant Cheer Extreme Raleigh, LLC

(“Cheer Extreme”), a cheerleading gym affiliated with the Varsity Defendants. In addition to pursuing claims against Cheer Extreme, its owners, and two of its coaches, Plaintiff seeks to hold Varsity Brands, LLC, Varsity Spirit, LLC, Varsity Brands Holding Company, (collectively, “Varsity” or “Varsity Defendants”); Jeff Webb (““Webb”); Bain Capital, LP (“Bain”); Charlesbank Capital Partners, LP (“Charlesbank”); and competitive cheerleading’s governing bodies—-USA Federation for Sport Cheering (“USA Cheer”) and U.S. All Star Federation (“USASF”)—liable for misrepresenting the safety of Varsity-affiliated gyms and competitions and failing to adopt and enforce adequate athlete-safety policies and procedures. Mr. Doe makes the following relevant factual allegations—as distinct from legal conclusions or unsupported inferences—which the court accepts as true at this stage of the proceedings. See King v. Rubenstein, 825 F.3d 206, 212 (4th Cir. 2016). i. Overview of All-Star Cheerleading Unlike scholastic or sideline cheerleading, private or “All-Star” cheerleading is a competition-based sport. DE 1 § 28-29. Over four million athletes across the United States participate in All-Star cheerleading, which as an industry generates billions of dollars in annual revenue. Jd. [§ 36-37. This industry’s valuation primarily stems from the costs incurred by the millions of athletes training and competing in All-Star cheerleading. Jd. § 37. A single season costs anywhere from $3,000 to $7,000 per athlete, while some families spend more than $20,000 a year for transportation, lodging, membership fees, merchandise, and uniforms. /d. § 31. The beginnings of the competitive cheerleading industry can be traced to Webb’s founding of the predecessor to Varsity Spirit in 1974. Jd. ¥ 42. Varsity began as a provider of educational training camps for cheerleaders and has since expanded into selling uniforms and apparel and organizing cheer competitions. Jd. J] 42-44. It now controls an estimated 90% of the All-Star

cheerleading industry. Jd. 4 46. From 2014 to 2018, Varsity was wholly owned by Charlesbank. Jd. $4 25, 109. In 2018, Bain purchased Varsity for $2.8 billion. Jd. {J 26, 111. Two governing bodies oversee competitive cheerleading in the United States: USASF and USA Cheer. Jd. 49 24, 82, 88, 90. Varsity was heavily involved in creating and operating both organizations. For example, Varsity allegedly advanced a $1.8 million interest-free loan to help launch USASF, submitted USASF’s trademark application, and for at least fifteen years, housed USASF’s offices at its corporate address and paid USASF’s employees directly. Jd. {J 81, 92-93. Varsity also continues to control a majority of the seats on USASF’s board of directors, including all seats with voting rights. Jd. □ 95. USA Cheer was similarly funded by and is operationally bound up with Varsity. Id. JJ 89, 98-100. As result of their ties to competitive cheerleading’s governing bodies, Webb and Varsity “were entirely self-regulated” and could control “all aspects of All-Star cheer.” Jd. J{ 79, 103. This control meant that All-Star athletes were “mandated” to buy a USASF membership to compete at Varsity events, id. { 49; they were required to pay annual or monthly dues to Varsity and their local Varsity-affiliated gym for “competition attendance, uniforms, accessories, and other related fees,” id. § 54; gyms and coaches also had to pay “monthly or annual fees” to USASF, USA Cheer, and the Varsity Defendants, id. { 55; affiliate gyms are required to sign “multi-year [Varsity] supply” and competition contracts, id. § 52; competing athletes at Varsity-affiliated gyms had to compete in a “specified number” of annual Varsity events, id. §] 59; and athletes and their families were required to purchase rooms at “Varsity-chosen” hotels when attending Varsity competitions, id. § 62. ii. Cheer Extreme Raleigh For over two decades, Cheer Extreme has been a private cheer, dance, and tumbling gym offering its services to children as well as adults in North Carolina and along the eastern seaboard.

Id. 4170. It was initially owned by a “prominent cheer family” who later sold the gym to Defendants Kelly and Randall! Helton (“the Heltons”). Jd. { 171. Coaches Burris and Wilson were “protégés” of Kelly Helton, helping her coach Cheer Extreme’s athletes. /d. {4 15-16. Over the years, Cheer Extreme has won “hundreds of National Championships, including 13 NCA titles, 4 MAJORS titles, 11 Summit titles, and a [sic] 5 World Champion titles.” Jd. 172. USASF certified Cheer Extreme “as meeting All-Star standards with respect to coach credentials, program quality, and athlete safety.” Jd 4175. According to Mr. Doe, USASF’s certification meant that USASF “warrant[ed] that the gym, its coaches, and its choreographers were safe, and followed best practices .. . to prevent athlete abuse.” Jd. {§ 51, 176. Cheer Extreme’s athletes had to purchase USASF memberships. /d. § 177. ili. Mr. Doe’s Alleged Abuse Mr. Doe started cheerleading in 2013 when he was twelve years old. { 197. He joined one of Cheer Extreme’s competition teams in 2015. Jd. J 197-200. As a competitive cheerleader, Mr. Doe traveled to and participated in Varsity events and activities, and he paid annual dues and other fees required by Cheer Extreme and Varsity. See id. □□ 207, 211-213, 226. Within his first year at Cheer Extreme, an unnamed male coach “initiated a sexual relationship” with Mr. Doe. Jd. § 200. Coaches Burris and Wilson “knew about the sexual relationship” between Mr. Doe and this other coach, who would hug and touch Mr. Doe in front of them and other adults at Cheer Extreme. Jd. {§ 202-203. At around the same time, an unnamed coach from another gym, Cheer Extreme Kernersville, began sending Mr. Doe nude photos. /d. § 205. Mr. Doe reported this coach’s conduct to Coach Burris. /d. § 206. Coach Burris instructed Mr. Doe to inform him if the coach sends nudes again but “did nothing further.” Jd. Around the same time, Mr. Doe connected with another unnamed Kernersville coach on social media. /d. { 209. Several months later, they attended the same competition, where the coach

came to Mr. Doe’s hotel room and insisted that Mr. Doe ride in his car. Jd. 213. The coach “proceeded to drive around, eventually stopping” the car and forcing Mr. Doe to perform a sex act. Id. 213. When he was seventeen years old, a Varsity- and USASF-approved choreographer solicited Mr. Doe for sex, which Mr. Doe successfully refused. Jd. 217-19.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United Mine Workers of America v. Gibbs
383 U.S. 715 (Supreme Court, 1966)
Anza v. Ideal Steel Supply Corp.
547 U.S. 451 (Supreme Court, 2006)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Jane Doe v. John Roe, and Roe and Roe, Limited
958 F.2d 763 (Seventh Circuit, 1992)
Edward Yashenko v. Harrah's Nc Casino Company, LLC
446 F.3d 541 (Fourth Circuit, 2006)
Francis v. Giacomelli
588 F.3d 186 (Fourth Circuit, 2009)
Boim v. Holy Land Foundation for Relief & Development
549 F.3d 685 (Seventh Circuit, 2008)
Adrian King, Jr. v. Jim Rubenstein
825 F.3d 206 (Fourth Circuit, 2016)
Marlon Hall v. DIRECTV, LLC
846 F.3d 757 (Fourth Circuit, 2017)
Bast v. Cohen, Dunn & Sinclair, PC
59 F.3d 492 (Fourth Circuit, 1995)
Brandenburg v. Seidel
859 F.2d 1179 (Fourth Circuit, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
Doe v. Varsity Brands, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doe-v-varsity-brands-llc-nced-2024.