In a surprising turn of events, a federal judge has rejected a $335 million settlement between Ultimate Fighting Championship (UFC) and over 1,200 fighters who were suing for wage suppression. The decision was made by U.S. District Judge Richard Boulware, who denied the motion for preliminary approval of the deal in a court note issued on Tuesday evening. The settlement was part of an agreement reached by TKO Group, a collaboration between UFC and WWE.
The judge's order stated that the proposed settlement was not approved, and a trial is now scheduled to begin on October 28. This opens up the possibility for the two parties to renegotiate a new settlement that addresses the judge's concerns, particularly regarding the adequacy of the payment offered to the fighters.
If UFC were to lose in the upcoming trial, the potential damages could exceed $4 billion, as antitrust cases often involve tripled damages. Prior to the proposed settlement, a trial with damages estimated at around $1.6 billion was set to commence in April.
The lawsuit revolved around allegations that UFC engaged in practices such as using long-term exclusive contracts to restrict free agency for fighters, pressuring fighters to renew contracts, and acquiring or shutting down competing MMA promoters in violation of antitrust laws. The class action lawsuit argued that UFC held significant 'monopsony power,' a situation where a single buyer has a monopoly, enabling them to underpay for labor.
A significant ruling in favor of the fighters was made last year when the court certified a class of 1,214 fighters who had participated in UFC bouts between 2010 and 2017. However, another group of plaintiffs who claimed their identities were exploited by UFC were not permitted to proceed with the lawsuit.
