UFC, plaintiffs in Le antitrust lawsuit reach new settlement

(This story has been updated to add new information.)

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

On Thursday, TKO announced a settlement with the plaintiffs in the case of Le vs. Zuffa for $375 million. This information was first reported by MMA journalist John Nash. However, the settlement must be approved by Judge Richard Boulware of the U.S. District Court in Nevada, who previously rejected a total $335 million settlement in the cases Le v. Zuffa and the second Johnson v. Zuffa.

According to the report, the new settlement offer of $375 million applies only to the Le case, which would represent an increase of $75 million over the amount plaintiffs in this class would have received had Boulware approved the tentative settlement. If the deal is approved, the $375 million will be paid in installments over an as yet unspecified period.

“We believe the new proposed settlement in the Le case is an excellent outcome for the class of UFC fighters we represent,” Eric Cramer, lead attorney representing fighters in UFC antitrust lawsuits, said in a statement to MMA Junkie. “If approved, it will provide immediate financial assistance to over 1,000 fighters, each of whom will recover a significant improvement over what they earned in the UFC during their boxing careers. We look forward to presenting the proposed settlement to the court for preliminary approval in the near future. We also plan to vigorously pursue claims on behalf of the class of fighters in the subsequent Johnson case, including claims for injunctive relief against the UFC.”

The plaintiffs and TKO announced a tentative settlement in March. The lawsuit sought damages ranging from $894 million to $1.6 billion. The plaintiffs agreed to a $355 million settlement, but Boulware rejected the settlement in July and expressed concerns that monetary damages against the UFC would not be sufficient and that some members of the class would only receive $3,000 in damages from it.

The proposed $375 million settlement applies only to the Le case and does not affect the Johnson case, which seeks relief. It is possible that Boulware will also reject this plea agreement before the trial date.

Le’s lawsuit began almost a decade ago. Five separate class action lawsuits filed between December 2014 and March 2015 were ultimately consolidated into one (Le et al.), and a second separate lawsuit was filed in 2021 (Johnson et al.).

The lawsuits centered around alleged violations of the Sherman Act. Class action lawsuits allow for triple damages, meaning the court could triple the amount it required the UFC to pay.

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

If the case goes to trial, plaintiffs will need a unanimous jury verdict to recover damages. Even if victorious, there could be years of appeals before fighters receive compensation or an injunction. For this reason, plaintiffs’ lawyers have in the past pushed for settlement, given that it provides a guarantee to his clients that they will receive something rather than risk receiving nothing.