The Ultimate Fighting Championship (UFC) has agreed to pay a staggering $335 million to settle a class-action lawsuit alleging the suppression of fighters’ wages, potentially amounting to up to $1.6 billion. This revelation comes after intense mediation between the involved parties, just before a trial was set to commence.
UFC To Pay Fighters $335M To Settle Wage Suppression Suit : Settlement Terms Revealed
TKO Group Holdings Inc., the parent company of UFC, disclosed the settlement on Wednesday, stating that the agreement was reached on March 13. The details were unveiled in a filing with the U.S. Securities and Exchange Commission. Under the terms, TKO will disburse the $335 million in installments over an agreed period.
Legal Proceedings on Hold
Following the settlement announcement, U.S. District Judge Richard F. Boulware II vacated all pending deadlines and hearings related to the case, including the trial date. This action was confirmed through a minute order posted to the docket.
Positive Response from Both Sides
Eric L. Cramer, representing the fighters, expressed satisfaction with the outcome, anticipating presenting the settlement to the court for approval in the near future. A UFC spokesperson also conveyed contentment, affirming that the agreement would bring an end to litigation and benefit all involved parties.
UFC To Pay Fighters $335M To Settle Wage Suppression Suit : Background of the Case
The legal battle dates back to 2015 when multiple lawsuits against Zuffa LLC, the former parent company of UFC, were consolidated. The grievances centered on allegations of monopsony power abuse by UFC, which purportedly suppressed fighters’ compensation. With the 2023 megamerger between Endeavor Group Holdings Inc. and World Wrestling Entertainment Inc., TKO emerged as the new parent entity of UFC.
Road to Settlement
With over 1,200 professional fighters represented, the case had been progressing towards a trial before the recent mediation. UFC had consistently rebutted the accusations, asserting its intention to defend vigorously at trial.
Legal Representation
The fighters are represented by a consortium of legal experts from firms including Berger Montague PC, Cohen Milstein Sellers & Toll PLLC, Joseph Saveri Law Firm LLP, Kemp Jones LLP, and others. On the UFC’s side, legal representation is led by attorneys from Latham & Watkins LLP, Paul Weiss Rifkind Wharton & Garrison LLP, and Campbell & Williams.
