UFC parent company TKO Group Holdings says it will pay $335 million to settle two class-action lawsuits filed by former UFC fighters who claim the MMA promoter violated antitrust laws.
Zuffa, the predecessor company that owned and operated the UFC, was a defendant in five related class action lawsuits filed between December 2014 and March 2015, which were consolidated into a single lawsuit in June 2015 (Le et al. v .Zuffa). In a further lawsuit, Johnson et al. v. Zuffa's case was filed in 2021.
On March 13, 2024, TKO agreed to settle all claims asserted in the two class actions for a total of $335 million, to be paid in installments over a period of time, the company disclosed in an SEC filing Wednesday. “These terms will be recorded in a lengthy agreement and submitted to the court for approval,” TKO said, adding that it expects the settlement amount to be deductible for tax purposes.
The lawsuit alleged that Zuffa violated antitrust laws by paying UFC fighters far less than they were entitled to and eliminating or harming other MMA promoters. UFC fighters Cung Le, Nate Quarry and Jon Fitch filed the initial complaint against Zuffa in December 2014 in a California federal court. They were later joined by fighters Brandon Vera, Luis Javier Vazquez and Kyle Kingsbury. On June 23, 2021, Kajan Johnson and CB Dollaway filed a class action antitrust lawsuit against Zuffa and Endeavor over similar claims that the UFC engaged in illegal anti-competitive conduct.
TKO Group was created through the Endeavor-led merger of UFC and WWE last year. Endeavor retains a majority interest in TKO.
Separately, in a Feb. 27 10-K filing, TKO settled a 2022 lawsuit filed by MLW Media against WWE, alleging that WWE interfered with MLW's contractual relationships with certain media platforms and engaged in other anti-competitive conduct. He said he paid $20 million to do it. and unfair business practices. The case was dismissed with prejudice on Dec. 26, according to the 10-K filing.