UFC and plaintiffs in Le antitrust lawsuit reach new settlement

A new agreement has been reached in one of the antitrust lawsuits pending against the UFC.

On Thursday, TKO announced a $375 million settlement with the plaintiffs in the Le v. Zuffa case. The news was first reported by MMA journalist John Nash. However, the settlement must be approved by U.S. District Court of Nevada Judge Richard Boulware, who previously rejected a combined $355 million settlement in the Le v. Zuffa and second Johnson v. Zuffa cases.

According to the report, this new $375 million settlement offer is strictly for the Le case, which would represent a $75 million increase over what plaintiffs in that class would have received if Boulware had approved the initial settlement. If approved, the $375 million would be paid in installments over a yet-to-be-determined period.

The plaintiffs and TKO announced the initial settlement in March. The lawsuits sought between $894 million and $1.6 billion in damages. The plaintiffs agreed to a $355 million settlement, but Boulware rejected that settlement in July, saying he was concerned that the monetary damages against the UFC were not sufficient — and that some class members would receive as little as $3,000 in compensation from the UFC.

The proposed $375 million settlement is for the Le case only and does not include the Johnson case, which seeks a preliminary injunction. It remains possible that Boulware will reject this settlement as well, before the trial date.

The Le lawsuit began nearly a decade ago. Five separate class action lawsuits filed between December 2014 and March 2015 were eventually consolidated into one (Le, et. al), with a second separate lawsuit filed in 2021 (Johnson, et. al).

The lawsuits revolved around alleged violations of the Sherman Act. Class action lawsuits allow for treble damages, meaning the court could have tripled the amount the UFC had to pay.

The group of former fighters alleged that the UFC’s contract structure and business practices stifled fighters’ ability to negotiate and explore other promotional options, creating a monopsony. The effort was led by former fighters including Cung Le, Kyle Kingsbury, Kajan Johnson, Jon Fitch and Brandon Vera.

If the case goes to trial, the plaintiffs will need a unanimous jury verdict to receive damages. Even with a victory, it could take years of appeals before the fighters receive compensation or an injunction. That’s why plaintiffs’ attorneys have pushed for a settlement in the past, since it’s a guarantee for their clients to get something, rather than risk getting nothing.