Judge denies $335 million UFC antitrust lawsuit settlement; trial set for October
The judge in the UFC antitrust lawsuit doesn't see the settlement agreement as fair – and that's shaken things up.
The antitrust lawsuit filed against the UFC by a group of former fighters isn’t over yet.
On Tuesday, Judge Richard Boulware of the U.S. District Court of Nevada rejected a $355 million settlement proposal for the Johnson vs. Zuffa and Le vs. Zuffa cases and set a tentative trial date of Oct. 28 for the latter, online documents show. MMA journalist John Nash was first to report news of Boulware’s ruling.
A written order from Boulware is expected to follow. A status conference is scheduled for Aug. 19, when the parties will meet with Boulware and solidify dates.
In March, the plaintiffs and defendants announced a settlement agreement was reached. While initially the lawsuits sought $894 million to $1.6 billion in damages, the settlement proposal was for $335 million.
Following the agreement, Boulware hinted he had concerns with the terms and indicated a denial of the proposal was likely.
MMA journalist Josh Gross, who attended a July12 hearing, reported Boulware was concerned the monetary damages were insufficient, especially considering many involved in the Johnson class signed waivers that, in turn, would only allow them to receive $3,000 in compensation from the lawsuit.
Additionally, Boulware reportedly brought up the difference between the two lawsuits were seeking. The Le class sought money. The Johnson class sought injunctive relief, which was not part of the settlement.
The fighters’ attorneys, including Eric Cramer, had argued for guaranteed monetary relief at the July 12 hearing, rather than risk getting nothing if a trial did not go their way.
“The reality is the claim has little value,” Cramer said (per Sportico). “They should take – they’d be better off both taking the money, getting the injunctive relief. … The world where that doesn’t happen is not in that fighter’s interests because I would tell that fighter if they were in my office, ‘You’re likely to lose. You’re likely to get nothing.'”
The Le lawsuit began nearly a decade ago. Five separate class-action lawsuits 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 centered around alleged violations of the Sherman Act. Class-action lawsuits allow for treble damages, meaning the court could’ve tripled the amount it required the UFC to pay.
The group of former fighters claimed the UFC contract structure and business practices suppressed fighters’ abilities to negotiate and explore other promotional options, creating a monopsony. The efforts were headed by former fighters Cung Le, Kyle Kingsbury, Kajan Johnson, Jon Fitch, Brandon Vera, and others.
Should another settlement agreement not be reached and approved, and the trial continues, the plaintiffs would need a unanimous jury verdict to win. Even with a victory, years’ worth of appeals could follow before fighters see compensation or injunctive relief.