On the Friday before Insomniac Events announced that it reached a settlement in its long-running lawsuit with the Los Angeles Memorial Coliseum Commission, news of layoffs began to trickle out.
About 30 people were let go, sources tell Amplify, in a Friday purge that preceded a Monday announcement in Los Angeles Superior Court that Insomniac and its chief executive Pasquale Rotella would pay the commission $3.5 million.
On Friday, Rotella confirmed the layoffs, telling Amplify in a statement that “Insomniac is a close-knit family of creative and talented individuals, and for over 20 years we have made it our goal to deliver unforgettable experiences to millions of people around the world. As we work to strengthen and grow our core business, we’ve made the decision to restructure our workforce to improve productivity, efficiency, and focus. Insomniac will continue to deliver the types of festivals, concerts and club experiences that our fans have come to expect.”
As for the settlement, the terms are expected to be finalized in the next 15 days, according to The Los Angeles Times. The announcement arrived just days before the civil trial was set to begin with jury selection Oct. 10.
The settlement concludes the six-year legal battle that accused Insomniac, Rotella and coliseum’s Todd DeStefano and Patrick Lynch of personally profiting from the Electric Daisy Carnival at the facility’s expense. The coliseum is suing to recover money it says it is owed by the men and Rotella in the civil case.
Charles Slyngstad, an attorney for the commission, stated that the government agency believed “the settlement is in the best interest of the public and the commission.”
An investigation looking into the death of festival-goers, including a 15-year-old at EDC, unearthed details about DeStefano and Lynch allegedly taking kickbacks from promoters and underpaying the coliseum. Rotella, DeStefano and Lynch all faced criminal charges for the alleged scheme, but the charges against DeStefano and Rotella were largely dropped after the DA’s Public Integrity Unit was twice caught engaging in prosecutorial misconduct.
The suit filed by the commission alleged that DeStefano and Lynch did not “maximize rent or other revenue” for the coliseum and instead used the money to enrich themselves. As the events manager, DeStefano allegedly placed at least $1.8 million that he received from promoters, vendors, and film companies into firms he founded. Lynch settled the civil lawsuit back in 2013, paying the commission $30,000.