Nevada district judge, Richard Boulware, has denied a $335 million settlement in two antitrust lawsuits brought against the Ultimate Fighting Championship (UFC) by former fighters.
The decision potentially sends both parties back to the negotiating table and sets a tentative trial date for one of the cases involving former MMA athlete Cung Le and Kajan Jhonson.
Background of the Lawsuits
The antitrust lawsuits filed against the UFC by a group of former fighters alleged that the organisation abused its market position to suppress fighter pay.
The lawsuits sought damages ranging from $894 million to $1.6 billion, with the settlement proposal eventually reaching $335 million.
Judge Boulware expressed concerns about the size of the settlement and the potential disparity between different classes of fighters pursuing similar claims.
He questioned whether one class of fighters might receive materially less than another class, raising doubts about the fairness of the proposed deal.
The denial of the settlement agreement by Judge Boulware means that the lawsuits are not yet resolved, and the parties may have to continue their legal battle in court.
The tentative trial date set for October indicates that the case will proceed unless a new settlement is reached before then.
Judges typically consider various factors when evaluating settlements, including the likelihood of success for both plaintiffs and defendants,
If the settlement had been approved, it would have avoided a costly trial for the UFC and eliminated the risk of potential remedies that could have disrupted the organisation’s business model.
On the other hand, if the case proceeds to trial and the UFC loses, it could face significantly higher financial liabilities, potentially reaching billions of dollars.
“(By) taking the unusual step of denying the settlement at this preliminary approval stage, the Judge is also denying the athletes their right to be heard during this pivotal moment in the case,” the UFC said in a statement.
