TKO Group Holdings Inc., the Ultimate Fighting Championship (UFC) parent company, has reached a settlement in two class action lawsuits totaling a staggering $335 million. 

This victory for former fighters signals a pivotal moment in the ongoing battle over fair compensation and employment practices within the sport. 

TKO Group Settles UFC Class Action Lawsuits for $335 Million

The settlement, announced through a regulatory filing on Wednesday, follows years of legal wrangling and intense scrutiny of the UFC's business practices. This resolution comes just weeks before the trial's scheduled commencement on Apr. 15.

Allegations of wage suppression and the misuse of monopoly power have long plagued the organization, with fighters claiming that restrictive contracts stifled their ability to earn a fair income and pursue opportunities elsewhere.

In a filing with the Securities and Exchange Commission, TKO said that the $335 million settlement will be disbursed in installments over an agreed-upon period, providing much-needed financial relief to the fighters involved. 

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UFC's Wage Suppression Tactics

The heart of the lawsuits centered on accusations that the UFC utilized coercive tactics to maintain control over its roster of athletes, effectively preventing them from realizing their full earning potential. 

Fighters alleged that long-term contracts hindered their ability to explore opportunities outside the UFC, restricting their bargaining power and limiting their ability to negotiate fair compensation.

The legal battle dates back to December 2014, when the initial lawsuits were filed against Zuffa LLC, the former owner of the UFC. Following Endeavor's acquisition of Zuffa and its subsequent merger with World Wrestling Entertainment, the organization was rebranded as TKO Group Holdings, leading to a continuation of the litigation under the new corporate entity.

Notable fighters involved in the lawsuits included Cung Le, Nathan Quarry, Jon Fitch, and Brandon Vera. Their collective efforts resulted in the granting of class-action status in August 2023, providing a unified front in their pursuit of justice.

The legal proceedings reached a critical juncture on Jan. 18 when the U.S. District Court for the District of Nevada denied the UFC's motion for summary judgment, clearing the path for the trial to proceed. 

News of the settlement sent shockwaves through the financial markets, with TKO Group Holdings' shares surging by as much as 7% to $86.65 in New York following the announcement. 

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