A federal judge has dismissed an $800 million lawsuit filed by the Enhanced Games alleging that World Aquatics, the World Anti-Doping Agency and USA Swimming led an illegal effort to dissuade swimmers and other athletes from competing in its new series.
U.S. District Judge Jesse Furman ruled against the sports startup in November, giving it 30 days to refile the case to address his objections. On Thursday, WADA sent out a news release announcing the deadline had passed.
“It vindicates the strong stance we have taken on this matter," WADA said in a news release.
A person with knowledge Enhanced's legal maneuverings told The Associated Press it did not refile because it has had recent success signing swimmers, and also because it does not want to complicate its recent filing for a public offering that it expects will raise around $200 million.
The person spoke on condition of anonymity because of the sensitivity of the ongoing public-offering process.
Earlier this month, Enhanced announced five more swimmers who planned to compete at its event next May, where athletes will compete for $250,000 first prizes.
They joined a field that now numbers around a dozen, including Olympic medalists James Magnussen, Ben Proud and Cody Miller. Fred Kerley is the top sprinting name set for the event, which will require strict medical observation of the athletes but will not ban drugs the way Olympics sports do.
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The lawsuit centered on a rule adopted by Switzerland-based World Aquatics earlier this year that threatened to banish athletes who compete in “sporting events that embrace the use of scientific advancements or other practices that may include prohibited substances and/or prohibited methods.”
It added WADA and USA Swimming as defendants because they supported the rule.
The fatal flaw in the case, Furman wrote in response to the defendants' motion to dismiss, was that “Enhanced fails to plead that World Aquatics has monopoly power” in the markets it is trying to compete in — namely, among elite athletes who want to test themselves under different drug-testing protocols than are used at the Olympics and other elite sports.
Furman acknowledged in his decision that Enhanced said it knew of facts that could answer the shortcomings he pointed out, but because Enhanced didn't respond in the 30-day window, the case is closed.
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