Every industry has its own set of rules and regulations. These laws will vary from sector to sector in order to promote fair competition while also encouraging innovation in Michigan. This is what makes a free market work for everybody. However, if a company is not careful in ensuring compliance with these regulations it can find itself in the middle of a business litigation lawsuit.
This is what one boxing manager and investment firm, Waddell & Reed, are now currently experiencing. Both have been sued by Top Rank, Inc., which is the premier boxing promotions firm in the United States. The lawsuit alleges that the defendants have been engaging in predatory practices that are a violation of federal laws. The federal antitrust lawsuit is asking for more than $100 million worth of damages as well as an injunction against the two defendants.
The defendants are being accused of engaging in a scheme to control the boxing industry by absorbing significant short-term losses in order to drive competition out of the industry. The lawsuit claims that the defendants violated the Muhammad Ali Boxing Reform Act by managing boxers while promoting fights at the same time. The reform act had been passed in 2000 by Congress in order to protect boxers. Along with various other allegations the lawsuit also claims that the defendants had forbidden boxers from doing business with Top Rank as well as other boxing promoters.
Now the two sides of the business litigation will face each other in the court of law. Just like with any other breach of contract dispute in Michigan, the judge will make the final decision as to how to settle the dispute. He or she will make this determination by looking at evidence and testimony presented throughout the litigation proceedings. Therefore, it is important for a party to the lawsuit to properly understand court procedures and rules of evidence in order to most effectively present a legal argument to a judge.
Source: Forbes, “Top Rank Lawsuit Alleges Promoter And Investment Firm Conspired To Monopolize Fight Business“, Mike Ozanian, July 1, 2015