Insomniac has settled its lengthy court battle with the Los Angeles government to the tune of $3.5 million. The lawsuit alleged that Insomniac and Go Ventures “engaged in unlawful and/or unfair business practices” by underpaying for usage of the Los Angeles Memorial Coliseum. Two longtime employees at the coliseum were accused in court documents of enriching themselves to allow Insomniac and Go Ventures to underpay for the Coliseum.
“I’m so pleased to finally be putting this matter behind me,” Pasquale Rotella said in an emailed statement via the LA Times. “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.”
The case also involved the coliseum General Manager, Patrick Lynch, who resigned in 2011 after running the building for 17 years and is accused of taking nearly $400,000 he shouldn’t have. Then there is ex-events manager Todd DeStefano who diverted funds from companies that did business with the coliseum for his own gain instead to the government, as outlined in the lawsuit.
In the criminal case, Rotella pleaded no contest to a misdemeanor conflict-of-interest charge and agreed to pay $150,000 to LA and serve three years probation.
