UFC's corporate entity reaches a $375 million agreement in a collective lawsuit filed by ex-athletes
The settlement agreement, which was revealed by TKO, UFC's parent company, through a filing to the US Securities and Exchange Commission, is expected to resolve all disputes for a total sum of $375 million, contingent upon the approval of US District Judge Richard Boulware of Las Vegas.
The proposed settlement details have yet to be made public in court, and the specifics, such as any confessions or denials of misconduct by the company, are still under wraps.
The contestants of the Le v. Zuffa lawsuit claimed that UFC utilized its dominant position in mixed martial arts (MMA) to minimize the chances for its athletes to receive offers from other promoters, and argued that UFC "unfairly reduced the compensation" for fighters by executing a "series of exclusionary and anticompetitive actions."
The suit, which was initially filed in December 2014 by retired fighter Cung Le along with Nate Quarry, Jon Fitch, and others, involved athletes who competed for UFC between December 2010 and June 2017, according to Berger Montague, the law firm representing the plaintiffs. Last year, Boulware granted class-action status to fighters who fought for UFC in the United States during this timeframe.
UFC petitioned to dismiss the case in 2015, but the court denied the request.
UFC and the plaintiffs originally agreed to a settlement of $335 million that encompassed both the Le v. Zuffa case and a separate lawsuit, but Boulware rejected this settlement, as reported by Reuters, due to the distribution of funds to the plaintiffs.
"We have reached a revised agreement with Plaintiffs to settle the Le case, taking into account Judge Boulware’s stated concerns," UFC stated to CNN.
"While we thought the original settlement was fair – a view shared by Plaintiffs – we believe it is in the best interest of all parties to put an end to this litigation."
The nine-figure settlement only pertains to the Le v. Zuffa case, while the Johnson v. Zuffa lawsuit, which is still pending against UFC, the world's leading MMA organization, remains unresolved. The Johnson case is in its early stages, and a motion to dismiss is still outstanding, according to UFC's statement.
"We believe this new proposed settlement for the Le case is a great outcome for the class of UFC fighters we represent," Berger Montague stated to CNN. "If approved, it would provide immediate financial relief to over 1,000 fighters, who would each receive a considerable boost to their earnings from UFC during their fighting careers."
"We look forward to presenting the proposed settlement to the Court for preliminary approval in the near future. We are also committed to pursuing claims on behalf of the fighter class in the later-filed Johnson case, including claims for injunctive relief against UFC."
The Johnson case, initiated by former UFC fighters Kajan Johnson and C.B. Dollaway, shares similarities with the Le lawsuit and alleges that the company breached antitrust laws by underpaying UFC fighters and damaging or impeding other MMA promoters.
The settlement, worth $375 million, is expected to resolve all disputes related to the world of mixed martial arts (MMA), specifically addressing concerns about UFC's competitive actions and fighter compensation. Despite the proposed settlement, the Johnson v. Zuffa lawsuit, which shares similar allegations, remains unresolved in the court.
