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Insomniac has filed a lawsuit alleging the three minority owners of Club Space have failed to uphold obligations tied to Factory Town.
The lawsuit claims Insomniac solely committed $40 million in funding for Factory Town, but David Sinopoli, Davide L. Danese, and Jose Gabriel Coloma Cano — minority owners of Club Space — withdrew from partnership negotiations in 2024, made “outrageous demands” for “millions more” and greater ownership, secretly withdrew nearly $3 million from a company account, threatened a lawsuit that included a “smear campaign” against Pasquale Rotella, and were also working with Club Space’s property owner to cut Insomniac out of the deal.
The three have refuted these allegations. Their attorney argues Factory Town was already “making money before any renovations” until they were “bullied out” of the deal. Their attorney also added that the “smear campaign” allegation is false, with social media already supplying a “public outcry against Insomniac” for the way the promoter operates. A source with “an interest in Club Space” told Billboard on Tuesday that Insomniac changed the terms of the Factory Town agreement and attempted to quietly negotiate a long-term lease with Factory Town’s landlord. The person also says the trio is preparing a counter-lawsuit.
Insomniac also claims it purchased a 51% majority stake in Club Space in 2019 to “rescue” a venue that was “cruising in mediocrity.” The lawsuit claims Club Space’s revenue has since increased by more than 700%, which led to the two wanting to create a second venue now known as Factory Town.
While the exact legal claims are redacted, Insomniac claims its goal is to “protect its operations at Club Space and Factory Town and get recourse for ‘millions of dollars in damages and irreparable harm to its business.’”
h/t: Billboard, EDM Identity
Featured image: Club Space
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