Legal battle rages on between Insomniac and the Factory Town Miami operators

Factory Town Miami has filed a countersuit against Insomniac for allegedly breaking a partnership contract.

Legal battles over joint venue operations in Miami are heating up, with Factory Town Miami filing a counterclaim against Insomniac Holdings LLC and its chief executive, Pasquale Rotella. The dispute centers on grave allegations of breach of contract and “fraudulent inducements” revealed during the venues’ collaboration.

This lawsuit has come to light after official court documents were obtained that reveal violations of settlement agreements in partnership contracts. The defendants at Factory Town include SDC Holdings LLC and its principals David E. Sinopoli, Davide L. Danese and Jose G. Coloma Cano. These three men are collectively referred to as “CDD” and are the promoters for high-profile Miami venues including Factory Town and Club Space. 

Insomniac had filed a federal lawsuit against CDD and Factory Town on August 4th after reaching a settlement agreement in July 2025. The fundamental claims in the lawsuit and counterclaim are a disagreement over the collapse of a $2.9 million settlement payment, in addition to two planned events at the Factory Town: the Hocus Pocus Festival and a show during Art Basel Miami. The lawsuit contained storytelling of an alleged breach of contract and “bad-faith conduct” actions undertaken while pursuing an ownership stake in the venue. 

The initial settlement in July followed a rigorous 16-hour mediation session, which required both parties to collaborate in good faith on budgeting and talent bookings for their joint events. It was agreed that CDD was mandated to propose artists and submit contracts for Insomniac‘s final approval. 

In the new countersuit filed in August, CDD are now alleging that Insomniac has violated these settlement terms by refusing to cooperate in joint event planning. They have claimed that Insomniac has ignored repeated requests for budgeting information and have made offers to artists without collaborating with Factory Town. 

It has been revealed in the court filings that from June through August 2025, email exchanges had been sent that show the CDD’s repeated, unanswered requests for collaboration. 

The counterclaim uses explosive language, accusing Insomniac and CEO Pasquale Rotella of “severe professional misconduct,” and “unscrupulous business dealings.” The suit further asserts they are “well-known… for their greed and mistreatment of business partners.” Insomniac’s attorney, Jordan Shaw, dismissed these specific allegations as nothing more than an “ad hominem attack.”

Defined by sharp accusations from Factory Town and a defense dismissing the claims by Insomniac, this high-stakes litigation promises a contentious resolution that will significantly impact the future of Miami’s electronic music scene.

Featured Image // Instagram // @pasqualerotella

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