Federal Court Grants Preliminary Approval for $375 Million UFC .
A federal court in Nevada has granted preliminary approval for a substantial $375 million settlement involving a certified group of elite mixed martial arts (MMA) fighters and Zuffa, LLC, the parent company of the Ultimate Fighting Championship (UFC). If finalized, this settlement will address the claims outlined in the case of Le, et al. v. Zuffa, LLC, marking a significant milestone in the first of two antitrust class actions related to wage suppression against the UFC.
The settlement arises from allegations that the UFC has maintained an anticompetitive scheme for years, aimed at suppressing compensation for top MMA fighters. Plaintiffs contend that the UFC unlawfully stifled competition from other MMA promoters while strengthening its monopsony power in the market for fighter services.
Benjamin D. Brown, managing partner of Cohen Milstein Sellers & Toll and co-chair of its Antitrust practice, commented: “First, I must commend the MMA fighters who helped expose UFC’s anticompetitive behavior by bringing this lawsuit. Becoming an elite MMA fighter is a dream come true for many athletes. However, the reality is that it’s a brutal business. Under UFC, many fighters were left broken and broke. The settlement we helped MMA fighters achieve recovers hundreds of millions of dollars in lost compensation from the UFC.”
Eric L. Cramer, chairman of Berger Montague and co-chair of its Antitrust department, expressed optimism about the ruling: “We are extremely pleased by the court’s decision. It is a monumental achievement that will provide significant relief to hundreds of deserving MMA fighters. We honor our brave representative plaintiffs who fought for this result for ten years. And we look forward to pursuing significant business changes and more damages in our second antitrust case against the UFC.”
The plaintiffs argue that as the UFC grew in power, aided by restrictive fighter contracts, it was able to eliminate competition by acquiring rival organizations such as World Fighting Alliance in 2006, World Extreme Cagefighting in 2006, and Strikeforce in 2011. This effectively positioned the UFC as the sole option for fighters, with claims that 90% of elite professional MMA fighters eventually found themselves under contract with the organization.
Ultimate Fighting Championship (UFC) is an American mixed martial arts promotion company located in Las Vegas, Nevada. It is owned and operated by TKO Group Holdings, a majority-owned subsidiary of Endeavor Group Holdings. As of 2023, it is the largest MMA promotion globally.
Cohen Milstein Sellers & Toll PLLC is a leading U.S. plaintiffs’ law firm with over 100 attorneys across eight offices. The firm advocates for the rights of everyday individuals—workers, consumers, small business owners, investors, and whistleblowers—striving to achieve corporate reforms and ensure fair markets for the common good.