Factory Town photo
Audio By Carbonatix
After nearly a year of litigation, Insomniac Holdings and the operators behind Club Space have officially settled their legal dispute, with the international music production company founded by EDM promoter Pasquale Rotella, remaining involved with both Club Space and Factory Town.
In a joint statement provided to New Times, Insomniac and business partners David Sinopoli, Davide Danese, and Jose Gabriel Coloma Cano said they “have amicably resolved their dispute.”
“Insomniac will continue to operate Club Space alongside David Sinopoli and maintain its commitment to Factory Town,” the statement reads. “Davide Danese and Coloma Cano will continue to operate Jolene, along with David Sinopoli. Davide Danese and Coloma Cano will also undertake new projects.”
The settlement brings an end to a bitter legal battle that centered on the future ownership and operation of Factory Town, one of Miami’s premier electronic music venues. Insomniac purchased a majority stake in Club Space in 2019, marking its first Miami venue, before expanding its partnership with Sinopoli, Danese, and Cano to launch Factory Town in 2022.
Relations between the partners eventually deteriorated. In August 2025, Insomniac sued the trio in federal court, alleging they attempted to renegotiate previously agreed-upon terms by demanding millions of dollars in additional compensation, larger ownership stakes, and greater control over Factory Town. The company also accused the operators of threatening a public smear campaign against founder and CEO Pasquale Rotella after mediation efforts broke down.
Sinopoli, Danese, and Cano strongly disputed those allegations, arguing that Insomniac had instead “methodically and unilaterally” stripped away their ownership rights after taking control of Factory Town’s lease. According to their claims, Insomniac gradually reduced their financial upside and operational authority, leaving them with “all the work, all the risk and a drastically reduced upside.”
The dispute stemmed in part from an earlier mediation agreement reached in June 2025. According to Insomniac, that agreement called for the company to purchase the trio’s interest in Factory Town for $3 million. Insomniac later alleged the operators violated the settlement by continuing to present themselves as controlling key events at the venue, telling promoters they had “won the lawsuit against Insomniac,” and interfering with booking and event planning.
A month after Insomniac’s lawsuit, the Club Space operators filed a counterclaim, alleging it was Insomniac, not them, that breached the settlement. They argued the agreement required both sides to jointly collaborate on Factory Town’s flagship events, including Hocus Pocus and Miami Art Week programming, but claimed Insomniac instead made unilateral decisions on talent bookings and business operations. Among their allegations was that Insomniac attempted to book CircoLoco at a 44 percent increase over the previous year’s deal without their involvement.
The counterclaim also contained pointed criticism of Rotella, accusing him of employing “predatory tactics and greed” and describing him as “insufferable to work with.” Insomniac dismissed those allegations at the time as an irrelevant smear campaign.
Following renewed settlement discussions last fall, attorneys for both sides informed the court last month that they had reached an agreement. The case has since been dismissed, closing a contentious chapter for two of Miami’s most influential electronic music brands while allowing Insomniac to remain involved in the future of both Club Space and Factory Town.
