The category motion lawsuits in opposition to the UFC that many believed would shake the inspiration of the enterprise of combined martial arts seem like coming to a detailed. It was introduced on Wednesday that the 2 class motion antitrust fits (Le vs. Zuffa and Johnson vs. Zuffa) had reached a settlement of $335 million.
That $335 million quantity will probably be break up among the many fighters who participated in UFC fights during times masking each fits — Le vs. Zuffa masking 2010 to 2017 and Johnson vs. Zuffa masking the interval after 2017 — after any charges are paid to the plaintiffs’ legal professionals. Initially filed as 5 separate lawsuits between December 2014 and March 2015, the circumstances have been merged into the Le vs. Zuffa case, with the Johnson vs. Zuffa case being filed in 2021.
“On March 13, 2024, TKO reached an settlement to settle all claims asserted in each class motion lawsuits (Le and Johnson) for an combination quantity of $335 million payable by the Firm and its subsidiaries in installments over an agreed-upon time period,” a TKO assertion to the SEC reads. “The phrases will probably be memorialized in a protracted type settlement after which submitted to the court docket for approval. The Firm anticipates that the settlement quantity will probably be deductible for tax functions.”
The antitrust fits, which claimed the UFC used practices that stifled fighter skill to barter with different promotions and locked fighters into restrictive contracts, which mixed to suppress fighter pay, have been searching for as much as $1.6 billion in damages, which means the UFC and mum or dad firm TKO will doubtless see a $335 million settlement as a significant victory, particularly if the settlement got here with no significant adjustments to the construction of UFC contracts shifting ahead.
“We’re happy with the settlement and can disclose extra after we file with the court docket in 45-60 days,” a tweet from the Combined Martial Arts Fighters Affiliation learn.
TKO Group Holdings inventory shot up practically 5 and a half factors after information of the settlement broke.
The proposed settlement nonetheless should be permitted by the court docket. Previous to information of the settlement, the subsequent stage within the trial was set for April 15.
“We’re happy to have reached an settlement to settle all claims asserted in each the Le and Johnson class-action lawsuits, bringing litigation to a detailed and benefitting all events,” A UFC assertion acquired by reporter Kevin Iole mentioned. “The ultimate phrases of the settlement will probably be submitted to the court docket of approval.”