US judge rejects $335 million UFC class action settlement over fighter pay

Endeavor group

31/07/2024 18:54

By Mike Scarcella
       July 31 (Reuters) - A U.S. judge has declined to approve
a $335 million settlement in a pair of class actions accusing
Ultimate Fighting Championship of artificially suppressing wages
of martial arts fighters, setting the case up for a trial where
a damages award could exceed $1 billion.
    In a short order on Tuesday, U.S. District Judge Richard
Boulware in Las Vegas set a tentative trial date of Oct. 24.
Boulware said he would later issue a written opinion to explain
his reasoning. 
    Boulware had earlier raised concerns about the settlement,
including how the settlement funds would be distributed to class
members. He set a hearing for next month to discuss next steps
in the litigation.
    The UFC had no immediate comment on Wednesday.
    In a statement, the fighters' lawyers said they will move
ahead at "full speed on all fronts" as directed by the court.
Still, the attorneys said they were open to continued talks with
the UFC about reaching a new accord.
    UFC is owned by TKO Group Holdings, a subsidiary of Endeavor
 EDR.N . UFC has denied any wrongdoing.
    The lawsuits, the first of which was filed in 2014, alleged
that UFC abused its market power to acquire or block rival
promoters and used exclusive contracts to keep fighters within
the UFC. The fighters claimed the UFC suppressed their bout
compensation.
    Boulware said last year in August that one group of 1,200
fighters could band together as a class action and sue for
damages that the plaintiffs estimated between $811 million and
$1.6 billion. That class competed in UFC bouts between 2010 and
2017.
    The other related lawsuit that was part of the settlement
involves fighters in bouts from mid-2017 to the present.
    The plaintiffs’ attorneys in a court filing in June said
nearly 500 fighters who are members of the settlement classes
would each receive more than $100,000.
    
    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.
    
    Read more:
    UFC to pay $335 mln to settle fighters' wage-fixing claims
    Promoter UFC can't strike fighters' class action in US
appeals court
    Martial arts fighters' wage lawsuit against UFC can proceed
as class action

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