Insomniac vs Club Space: Factory Town Dispute Explodes Into Lawsuit

A major legal battle is shaking Miami nightlife: Insomniac has filed a lawsuit against three minority owners of Club Space, accusing them of breaching obligations tied to the development of Factory Town.

According to the filing, Insomniac — led by founder Pasquale Rotella — claims it put up $40 million to fund Factory Town. The lawsuit alleges that minority owners David Sinopoli, Davide L. Danese, and Jose Gabriel Coloma Cano later pulled out of partnership talks, made “outrageous demands” for more ownership and millions in extra funding, and even withdrew nearly $3 million from company accounts. The filing also accuses the trio of plotting with the property owner to cut Insomniac out of the deal and threatening a lawsuit backed by a “smear campaign” against Rotella.

The accused have denied the allegations. Their attorney argues that Factory Town was already profitable before Insomniac got involved, and that the trio was “bullied out” of the deal. They further claim the supposed smear campaign never happened, instead pointing to existing public criticism of Insomniac’s business practices. A source connected to Club Space told Billboard that Insomniac actually changed the deal terms and secretly attempted to negotiate a long-term lease directly with Factory Town’s landlord. A counter-lawsuit is reportedly in preparation.

This is not the first financial entanglement between the parties. Insomniac purchased a 51% majority stake in Club Space back in 2019, claiming the venue was “cruising in mediocrity” before their involvement. Since then, Club Space’s revenue has reportedly increased by over 700%, fueling the vision for Factory Town as a second powerhouse venue.

While parts of the lawsuit remain redacted, Insomniac says it’s seeking to protect its Miami operations and recover “millions of dollars in damages and irreparable harm.” For now, the case adds a legal twist to one of the most influential partnerships in the U.S. club scene.

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