TKO stocks got a bump today on Wall Street after the company announced via a SEC filing that it has reached an agreement to settle all claims against two class action lawsuits filed against them by former UFC athletes which alleged violations of the Sherman Act.
The lawsuits were filed against Zuffa, LLC, but now fall under TKO since the merger of WWE and UFC.
“On March 13, 2024, TKO reached an agreement to settle all claims asserted in both class action lawsuits (Le and Johnson) for an aggregate amount of $335 million payable by the Company and its subsidiaries in installments over an agreed-upon period of time,” the filing said. “The terms will be memorialized in a long form agreement and then submitted to the court for approval. The Company anticipates that the settlement amount will be deductible for tax purposes.”
The $335 million figure is much, much less than the $1.6 billion that the plaintiffs were seeking.