UFC agrees to new $375 million settlement in fighters’ class action

Endeavor group

26/09/2024 18:30

By Mike Scarcella
       Sept 26 (Reuters) - Ultimate Fighting Championship said
on Thursday that it has agreed to pay $375 million to settle a
decade-old class action claiming it artificially suppressed
wages of some martial arts fighters, after a U.S. judge rejected
an earlier deal for a smaller amount.
    UFC parent TKO Group Holdings  TKO.N  disclosed the proposed
new settlement in a filing to the U.S. Securities and Exchange
Commission. TKO is part of Endeavor Group  EDR.N .
    The accord in U.S. court in Nevada, which is subject to the
judge's approval, would resolve one of two major class actions
against the UFC alleging it suppressed wages in violation of
U.S. antitrust law.
    The settlement includes fighters who participated in bouts
between 2010 and 2017. The other pending case includes fighters
from 2017 to the present.
    UFC had initially agreed to pay $335 million to resolve both
of the cases. U.S. District Judge Richard Boulware rejected that
proposed settlement in July and later set a trial date for next
February.
    Boulware had earlier questioned the settlement amount and
its provisions for distributing funds to class members. 
    In a statement on Thursday, UFC said “while we believe the
original settlement was fair — a sentiment that was also shared
by plaintiffs — we feel it is in the best interest of all
parties to bring this litigation to a close.”
    The fighters’ lawyers in a statement on Thursday said the
revised settlement would provide "immediate monetary relief" to
more than 1,000 plaintiffs and a "significant enhancement" to
what the fighters earned from the UFC during their career.
    UFC has denied any wrongdoing.
    The two lawsuits, filed in 2014 and 2021, alleged UFC abused
its market power to acquire or block rival promoters and used
exclusive contracts to keep fighters within the UFC. The
fighters alleged the UFC suppressed their bout compensation.
    UFC’s bid to dismiss the 2021 lawsuit is pending.
    
    The cases are Le v. Zuffa LLC, U.S. District Court for the
District Of Nevada, No. 2:15-cv-01045, and Johnson v. Zuffa,
same court, No. 2:21-cv-01189-RFB-BNW.
    For the class: Eric Cramer of Berger Montague; Benjamin
Brown of Cohen Milstein Sellers & Toll; and Joseph Saveri of
Joseph Saveri Law Firm
    For Zuffa/UFC: William Isaacson of Paul, Weiss, Rifkind,
Wharton & Garrison
    
    Read more:
    US judge rejects $335 million UFC class action settlement
over fighter pay
    Martial arts fighters' wage lawsuit against UFC can proceed
as class action

 (Reporting by Mike Scarcella)
 ((Mike.Scarcella@thomsonreuters.com;))