Less than two months after a judge rejected the UFC’s original settlement for two class action lawsuits involving former fighters alleging the company suppressed their wages, a new settlement has been reached in one of the cases.
In an SEC disclosure filing from TKO Group Holdings—parent company of the UFC—posted on Thursday (h/t MMA Fighting’s Mike Heck), the promotion revealed a $375 million settlement was agreed to by all parties involved:
“On September 26, 2024, TKO reached an agreement with the plaintiffs to settle all claims asserted in the Le case for an aggregate amount of $375 million payable in installments over an agreed-upon period of time by the Company and its subsidiaries following the court’s denial of an earlier proposed settlement agreement. The terms of the Updated Settlement Agreement have been memorialized in a long form agreement, which will be submitted to the court for approval. The Company anticipates that the settlement amount will be deductible for tax purposes.”
The UFC originally agreed to a $335 million settlement in March to resolve both class action lawsuits. ESPN’s Dotun Akintoye noted the lawsuits spanned fighters who competed in the promotion from Dec. 16, 2010, to June 30, 2017, and from July 1, 2017, to 2021.
The initial complaint was filed in December 2014 by former UFC fighters Cung Le, Nate Quarry and Jon Fitch. Kajan Johnson and C.B. Dollaway filed their class action lawsuit against the UFC in June 2021.
According to Akintoye, more than 1,200 individuals were represented in one of the lawsuits.
United States district judge Richard Boulware rejected the initial settlement on July 31, citing concerns about how the funds would be distributed among the class members.
The UFC’s statement on Thursday noted the new $375 million settlement is only for the lawsuit filed by Le, et al.
“As for the Johnson case, that process is in very early stages, and a motion to dismiss the complaint remains pending,” the statement reads.
Heck noted the court still needs to approve the new settlement agreement before the case is officially closed.
If Boulware elects not to approve the settlement, there is an already-scheduled trial date for the case set to begin on Feb. 3, 2025. There is currently no trial date set in the second lawsuit that is still pending.
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