UFC Antitrust Settlement Denied, Trial Reset For October

The courts have rejected the UFC’s $335 million anti-trust settlement with a provisional trial date set for October 28. 

TKO Group Holdings Inc. had reached a settlement. This was subject to the court’s approval over two lawsuits brought by former UFC fighters. One lawsuit was filed in 2014. This expressed that the UFC had breached antitrust laws to decide how much fighters could earn. This enabled them to form a monopoly, as around 1,200 fighters came forward in a case known as  ‘Le et al. vs Zuffa.’ In 2021, another lawsuit was filed by Kajan Johnson and C.B. Dollaway. A settlement had been reached, which prevented a trial from going ahead. The only thing needed was for the courts to approve it. 

However, Judge Richard Boulware rejected the settlement. A ‘status conference’ would take place on August 19 to decide the exact trial date. However, the lead attorney (Eric Cramer) for the fighters has expressed concern. An immediate settlement gives the fighters the money they need. Meanwhile, going to trial which could result in a loss, may prevent any payout. The fighters must secure a unanimous verdict to win. But even if they do, the UFC will likely appeal, leaving the case ongoing before fighters are paid.

TKO Reacts

“We obviously disagree with this ruling. And believe it disregards the expertise of counsel from both sides. As well as that of an accomplished and expert mediator – all of whom have decades of experience in antitrust case law.

“It prevents the athletes from receiving what they have argued is in their best interest and unwinds an extensively negotiated settlement that, in the plaintiffs’ counsel’s own words, ‘would far surpass the typical antitrust class action settlement’ and ‘is an excellent result for the Settlement Classes by all traditional measures.’

“Additionally, by taking the unusual step of denying the settlement at this preliminary approval stage, the Judge is also denying the athletes their right to be heard during this pivotal moment in the case. As we have said throughout this process, we believe strongly in the merits of our cases and are evaluating all our options – including, without limitation, an appeal – and have initiated discussions with plaintiffs’ counsel who have expressed a willingness to engage in separate settlement discussions for the Le and Johnson cases,” TKO Group Holdings Inc.

Further Reaction

“Plaintiffs respect the Court’s ruling rejecting the proposed global resolution of the Le and Johnson cases, and accordingly will be moving forward full speed on all fronts as directed by the Court. We now plan on ramping up preparations in Le for the imminent trial, and also will begin pressing forward with discovery in Johnson.

“At the same time, with the interests of our clients and the classes at the forefront, we are also open to reengaging with the UFC to see whether the parties could reach a settlement building off of the momentum achieved in the prior settlement, but working to satisfy the Court’s expressed concerns with that resolution.

“In particular, to eliminate several of the issues expressed by the Court regarding the prior proposed combined settlement of Le and Johnson, Plaintiffs believe the best path forward, if a new settlement becomes a possibility, is to attempt to resolve the two cases separately, focusing first on the Le case given its imminent trial date, and using the progress made to date as a jumping off point for further discussions.

“Thus, while Plaintiffs’ focus will be on preparing for trial, we are keeping an open mind with respect to a potential new resolution. At root, Plaintiffs want nothing more and nothing less than justice for the professional MMA fighters we have represented for more than ten years in the most efficient and effective way possible,” Eric Cramer