Federal Lawsuit Pits Insomniac Against Owners of Miami’s Club Space and Factory Town

Insomniac claims its partners diverted joint assets and withheld event funds, while the defendants vehemently deny the allegations.

Insomniac, North America’s preeminent electronic music event organizer, has filed an explosive federal lawsuit against the proprietors of two prominent Miami venues, Club Space and Factory Town, according to court documents obtained by EDM.com.

Filed August 4th in the U.S. District Court for the Southern District of Florida, the 51-page complaint seeks damages exceeding $75,000, injunctive relief to safeguard Insomniac’s brand and upcoming events, and judicial intervention to prevent the alleged diversion of funds. The lawsuit alleges breach of contract and bad-faith conduct by a trio of Miami nightlife business owners: David Sinopoli, Davide L. Danese and Jose Gabriel Coloma Cano, who are collectively referred to as “CDD” therein.

Insomniac claims that in 2019, it partnered with CDD and other defendants to revitalize Club Space, a downtown Miami nightlife staple. According to the lawsuit, Insomniac acquired a 51% stake in the business, secured rights to the Club Space brand and negotiated a long-term lease to stabilize operations.

The success of Club Space prompted a second venture, Factory Town, a large outdoor venue in the Allapattah district that has emerged as a local favorite during Miami Music Week. Insomniac alleges it solely funded Factory Town, investing over $40 million in lease obligations, facility improvements and event expenses. However, the complaint states that while partnership agreements were being finalized, the defendants rescinded their signatures, demanded “millions more than previously agreed” and sought greater ownership.

Insomniac calls these demands “outrageous” in the court documents, in which they claim their goal is “to allow Insomniac to save and protect the Club Space brand, and to mitigate the irreparable harm the CDD Parties are causing Insomniac.”

“This was a lawsuit of last resort,” said Jordan Shaw, Insomniac’s attorney. “We did everything that we possibly could to avoid litigation, and candidly, what we’d like to get out of it is peace and a continued prosperity with the venues and the community that we have worked so hard to build. We view this as an attempt by minority shareholders to force out majority shareholders, who have helped drive revenues by more than 700 percent.”

The proprietors of Club Space and Factory Town, however, vehemently refute Insomniac’s complaint. When reached for comment, a source close to Club Space characterized the lawsuit as “a negotiation tactic to scare us.”

“We started Factory Town and brought the project to [Insomniac],” the representative told EDM.com. “We worked on it and they tried to squeeze us out. And since we refused to continue to work with them from 2026 onward for Factory Town and couldn’t come to a deal that we considered fair, now they are retaliating against our other businesses. We’re working on a fair resolution on the actual core issues for both parties.”

CDD’s attorney, Bruce A. Weil, called the lawsuit “a complete fabrication” in a statement and described Insomniac as “predatory,” accusing the company of exploiting his clients’ goodwill.

“The documentary evidence will show that it is Insomniac who not only breached the contract, not only breached their fiduciary duties, but they were reckless, and their conduct was intentional,” he said, characterizing Insomniac’s actions as “an intentional scheme and plot to sabotage my clients.” Weil also said his clients are preparing a “voluminous counterclaim” and hinted at “multiple other actions” that could follow.

Insomniac’s counsel rejected the notion of sabotage, arguing the dispute stems from accountability.

“Insomniac’s goal is, and always has been, to continue the success that this partnership has yielded since 2019,” Shaw told EDM.com in a statement. “Success, that CDD was more than happy to accept and enjoy for many years. But facts are facts and, at a certain point there is accountability for bad acts and broken promises. Now, CDD is choosing to pursue undeserved profits and at the expense of the partners who brought them unrivaled success. The goal is resolution, but if a resolution is not reached, Insomniac will pursue accountability, and the facts will support it.”

Editor’s Note [August 20, 7:22pm ET]: Following publication, representatives for Jordan Shaw, Managing Partner of Fort Lauderdale-based law firm Shaw Lewenz, contacted EDM.com to provide additional comment. This article has been updated to include Shaw’s response.