But Kajan Johnson Case Still Pending

Dana White can now take a temporary sigh of relief as the UFC’s parent company, TKO Group Holdings, has reached a $375 million settlement in one of the two major antitrust lawsuits the organization faces. This lawsuit, dating back to 2014, was initiated by several former UFC fighters, including Cung Le, Jon Fitch, and Nate Quarry, who claimed the UFC’s monopolistic practices suppressed fighter earnings and hurt other competing promotions. The fighters alleged that the UFC used its market dominance to control fighter contracts, reduce competition, and cap fighter salaries below what would be possible in a more competitive market.

Earlier this year, a settlement was proposed in March for $335 million, but it was rejected by U.S. District Judge Richard Boulware. One of the key reasons for the rejection was the merging of two distinct class action lawsuits into one settlement. The cases involved two different classes of fighters: the first, led by Cung Le, covering fighters competing between 2010 and 2017, and the second case involving fighters like Kajan Johnson, covering those competing from 2017 onwards. Judge Boulware believed that the original settlement did not sufficiently account for the distinct nature of the claims made by the two groups.

The newly revised settlement, announced on September 26, 2024, brings the amount up to $375 million. This increase addresses some of the concerns raised earlier in the year and now applies specifically to the fighters involved in the Cung Le-led lawsuit. The payout will be distributed among more than 1,200 fighters, providing much-needed compensation to those who felt underpaid during their UFC careers.

According to attorney Eric Cramer, who represents the fighters, “We believe the new proposed settlement in the Le case is an excellent result for the class of UFC fighters we represent. If approved, it would provide immediate financial compensation to over 1,000 fighters, each of whom would receive a significant boost to what he or she earned from the UFC during their career. We look forward to presenting the proposed settlement to the court for preliminary approval in the near future.”

Cramer also noted that the fighters are pleased with this result but emphasized that there is still work to be done for those involved in the Kajan Johnson case, which remains unresolved.

He added, “We plan also to vigorously pursue claims on the fighter class’s behalf in the later filed Johnson case, including claims for injunctive relief against the UFC.”.

UFC Releases Statement on the Settlement

In response to the agreement, the UFC issued a statement confirming the revised settlement and expressing hope that this will put the lengthy legal process behind them. The UFC’s parent company, TKO Group Holdings, clarified that they have worked with the plaintiffs to address the judge’s concerns. They reiterated their belief that the initial settlement was fair, but agreed that finalizing this case was in the best interests of both the company and the fighters.

“We have reached a revised agreement with plaintiffs to settle the Le case with terms that we believe address Judge Boulware’s stated concerns. While we believe the original settlement was fair—a sentiment that was also shared by the plaintiffs—we feel it is in the best interest of all parties to bring this litigation to a close,” the UFC stated.

However, the case involving Kajan Johnson and C.B. Dollaway, which represents fighters competing from 2017 to 2021, remains ongoing. The UFC has filed a motion to dismiss this lawsuit, but it is still in the early stages, with no final decision made yet. Should this case proceed, it could have a broader impact on the UFC’s fighter contract practices and payment structures going forward.

Further Developments and Legal Implications

The settlement of $375 million, while a significant victory for the fighters involved in the Cung Le case, leaves several questions about the UFC’s business practices moving forward. The current settlement does not appear to require any changes to the UFC’s methods of contract negotiations. As such, while fighters will be compensated financially, there are concerns that the underlying issues related to fighter pay and treatment remain unaddressed. For the fighters in the Johnson case, their legal team is pushing not only for financial compensation but also for broader reforms in how the UFC handles contracts and compensation.

The court still needs to approve the revised settlement, with a trial date set for February 3, 2025, should the court not approve the current agreement. This leaves a window for both the UFC and the fighters to potentially revisit certain elements of the case, though the UFC hopes this chapter will soon be closed.

Sources: MMAnytt.se

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