TKO settlement $1B better than expectations, says Citi

Citi keeps a Buy rating on TKO Group after the company agreed to settle all claims asserted in both class lawsuits for an amount of $335M, paid over an agreed-upon period of time. The trial had initially been set to start in early April, and the plaintiffs were seeking between $800M to $1.6B, the analyst tells investors in a research note. The firm estimates that based on the stock move, the settlement amount came in $1B better than buy-side expectations. It says an overhang has been lifted on TKO shares.