A California judge has thrown out a civil lawsuit against Electric Daisy Carnival rave promoter and CEO of Insomniac Productions, Pasquale Rotella and Reza Gerami of Go Ventures, that alleged the two had participated in a multimillion-dollar kickback scheme with ex-Memorial Coliseum events manager Todd DeStefano.
The suit was brought up by the city of Los Angeles' Coliseum Commision in late 2011 and charged the three for civil conspiracy, fraud, unfair business practices, and shady accounting.
The lawsuit claimed the two promotors paid off DeStefano in exchange for guaranteed access and lower rates at the Los Angeles concert venue. The promoters said that the transactions were for legitimate freelance services that DeStefano performed separate from his position as events manager.
L.A. Superior Court judge Terry A. Green ruled on July 10 that the plaintiffs did not prove that a conspiracy existed. The judge said that the Coliseum could amend their complaint by July 31. Coliseum general manager John Sandbrook told the LA Weekly that the Commision plans to discuss any further action at their next meeting, which is set to take place tomorrow (July 17).
While the civil charges have been thrown out, the three (and ex-Coliseum general manager Patrick Lynch) remain under criminal indictment for similar charges. The criminal case remains ongoing.
Following the legal troubles in L.A., Electric Daisy Carnival moved to Las Vegas and has since seen record-breaking crowds upwards of 320,000.
Last month Insomniac Events entered into a "creative partnership" with Live Nation