The case centers on control and revenue disputes involving Club Space and Factory Town.
Photo credit: Adinayev
Insomniac Holdings has filed a federal lawsuit against the operators of Club Space and Factory Town, alleging breach of agreement and attempts to take over joint projects. The complaint, filed on August 4th, 2025, names David Sinopoli, Davide L. Danese, and Jose Gabriel Coloma Cano as defendants.
The dispute follows a 2019 partnership in which Insomniac acquired a 51% stake in Club Space, boosting its revenue and establishing a long-term lease. The success led to plans for Factory Town, a larger venue intended for open-air events. Insomniac claims to have invested $40 million into the project.
Tensions reportedly escalated when the partners—collectively referred to as “CDD”—withdrew from the deal, demanding more money and increased ownership without financial contributions. The lawsuit accuses them of bad faith and threatening a media smear campaign against CEO Pasquale Rotella.
The defendants argue that Insomniac gradually reduced their share in profits and maneuvered to control the venue’s lease. They describe the lawsuit as a tactic to pressure them after they decided to end the partnership after 2025.
Efforts at mediation failed, though both sides expressed a desire for resolution. Insomniac’s attorney stated their aim is to maintain progress: “We were doing great things. We’d like to continue to do them.”
The full complaint has been filed in federal court and remains publicly accessible. Read it here.
