TKO Agrees To $335 Million Settlement In Class-Action Lawsuits

TKO Group Holdings Inc. will pay $335 million to settle two class-action lawsuits brought by ex-UFC fighters who alleged a breach of antitrust laws.

The lawsuit was initially filed in 2014 over suggestions the UFC monopolized fighters’ pay. It was claimed the UFC breached anti-competitive measures to destroy any competition, thus controlling what a fighter earned. The first class action named ‘Le et al. vs Zuffa’ consisted of around 1,200 fighters brought by Cung LeNate Quarry and Kajan Johnson. They were then joined by Brandon Vera, Luis Javier Vazquez and Kyle Kingsbury.

Fast forward to 2021, Kajan Johnson and C.B. Dollaway filed a class-action antitrust lawsuit, alleging similar claims. The case was on course for a trial on April 15, with damages estimated to be between $894 million and $1.6 billion. The judge in question, Richard Boulware, refused to delay the trial unless a settlement was reached. According to the Securities and Exchange Commission, TKO Group Holdings Inc. has now filed a disclosure to settle today. After the settlement was made, their stock price increased by 7.84 percent. The share price increased from $81.15 per share to $87.37 at the time the NYSE closed. 

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“On March 13, 2024, TKO reached an agreement to settle all claims asserted in both class action lawsuits ([Cung] Le and [Kajan] Johnson) for an aggregate amount of $335 million payable by the Company and its subsidiaries in installments over an agreed-upon period of time. The terms will be memorialized in a long form agreement and then submitted to the court for approval. The Company anticipates that the settlement amount will be deductible for tax purposes,” TKO Group Holdings said

 

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