Insomniac & Founder Pasquale Rotella Settle Civil Suit With L.A. Coliseum, Agree to Pay $3.5 Million: Report
Insomniac and its founder Pasquale Rotella have agreed to pay $3.5 million to the Los Angeles Memorial Coliseum Commission, marking the end of a six-year legal battle in civil court. The settlement was announced Monday in Los Angeles Superior Court, according to a report by the LA Times.
The L.A. Coliseum is owned by the California State Government, and its comission filed a lawsuit against Insomniac, as well as no-defunct promotion company Go Ventures and two longtime stadium managers. The suit accused the managers of years of corruption, claiming they ran the stadium like a private business of their own, personally pocketing revenue that should have been paid to the government agency from 2006 to 2011, while simultaneously undercharging Insomniac for the Electric Daisy Carnival events. Insomniac and Go Ventures were charged with engaging in unfair and/or unlawful business practices.
Due to the suit, Insomniac moved EDC to Las Vegas in 2011. The company has since been bought by Live Nation. In a criminal case, Rotella pleaded no contest to a misdemeanor conflict-of-interest charge and agreed to pay $150,000 to Los Angeles County and serve three years of probation. All federal charges of bribery, embezzlement, and conspiracy against founder and head executive Rotella were dropped in 2016.
"I'm so pleased to finally be putting this matter behind me," Rotella said in an emailed statement. "It's been a long journey to get where we are, and I’m excited about what’s next for me in my hometown of Los Angeles."
Read the full report via the LA Times.