Last July, Judge Richard Boulware of the U.S. District Court of Nevada refused to approve the TKO Group’s $335 million antitrust lawsuit settlements (Le v. Zuffa and Johnson v. Zuffa). Judge Boulware denied the settlement because the fighters would receive a low payout.
On Thursday, TKO Group Holdings announced via SEC filing that it had reached an agreement with the plaintiffs in the Le vs. Zuffa case for $375 million. However, the settlement must be approved by the judge.
“On September 26, 2024, TKO reached an agreement with the plaintiffs to settle all claims asserted in the Le case for an aggregate amount of $375 million payable in installments over an agreed-upon period of time by the Company and its subsidiaries (the “Updated Settlement Agreement”), following the court’s denial of an earlier proposed settlement agreement. The terms of the Updated Settlement Agreement have been memorialized in a long form agreement, which will be submitted to the court for approval. The Company anticipates that the settlement amount will be deductible for tax purposes.”
In a press release, TKO announced that the Johnson case is in very early stages and that a motion to dismiss the complaint is still pending.
“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 Plaintiffs — we feel it is in the best interest of all parties to bring this litigation to a close.
As for the Johnson case, that process is in very early stages, and a motion to dismiss the complaint remains pending.”