Insomniac to Stay Involved With Miami’s Club Space & Factory Town Venues After Legal Settlement

Insomniac Events has reached a settlement that will keep the global dance music company involved in two Miami venues following a protracted legal battle with a group of the city’s club operators.

In a joint statement to Billboard on Friday (July 10), reps for Insomniac and business partners David Sinopoli, Davide Danese and Jose Gabriel Coloma Cano say they “have amicably resolved their dispute.” Insomniac, partially owned by Live Nation, previously worked with the trio of men to run Miami’s Club Space and Factory Town venues until a legal fight broke out two years ago.

“Insomniac will continue to operate Club Space alongside David Sinopoli and maintain its commitment to Factory Town,” the reps say of the settlement. “Davide Danese and Coloma Cano will continue to operate Jolene, along with David Sinopoli.  Davide Danese and Coloma Cano will also undertake new projects.“

In 2019, Insomniac acquired an ownership stake in Club Space, at that point co-owned by Sinopoli, Danese and Cano, as its first Miami venue. The business relationship was a success at first, leading the group to embark on another joint project for the upstart Miami venue Factory Town in 2022.

That’s when the trouble arose. Insomniac alleges that in 2024, Sinopoli, Danese and Cano began to make “outrageous demands” for more money and control of Factory Town. The three men, meanwhile, claim Insomniac “methodically and unilaterally” stripped away their ownership rights over the venue, leaving them with “all the work, all the risk and a drastically reduced upside.”

The two sides went into mediation in June 2025 and emerged with an initial settlement, under which Insomniac would buy Sinopoli, Danese and Cano out of Factory Town for $3 million. But that August, Insomniac sued the trio for allegedly violating that deal, claiming they continued to operate as if they controlled the venue, including by telling Ibiza promoters that they’d “won their lawsuit” and interfering with event planning.

Sinopoli, Danese and Cano countersued Insomniac a month later, claiming the settlement actually required them to collaborate on Factory Town’s annual Hocus Pocus Halloween party and programming for Art Basel Miami. The trio said Insomniac breached the deal by unilaterally making talent booking decisions, such as an offer to party brand CircoLoco at a 44% markup from the prior year’s deal.

The countersuit also included some inflammatory allegations against Insomniac’s CEO, Pasquale Rotella. The legal papers accused Rotella of “predatory tactics and greed” and called him “insufferable to work with,” adding that Sinopoli, Danese and Cano “had the misfortune of witnessing and experiencing first-hand Rotella’s cruelty, self-centeredness and volatility.” Insomniac characterized these claims as an irrelevant “smear campaign.”

The two sides entered renewed settlement discussions in the fall. Their lawyers notified the judge overseeing their case last month that they’d reached a deal, and the case has now been closed.