Insomniac Events filed a complaint on January 28 alleging that Seattle-based promoter USC Events (under their parent company, Conscious Entertainment Group, LLC, and their founder/CEO, Chad Anderson) fraudulently misused funds and breached their contract. Since 2013, the two companies had been co-producing their annual event, Paradiso, held at The Gorge in Washington.
When their agreement was renewed in 2019, both parties began planning Paradiso accordingly. In that year, USC Events submitted four advance funding requests totaling over $2 million to cover talent and production costs. Insomniac reportedly fulfilled those requests in full.
After learning that Anderson had misused the funds to pay employees, production contractors, artists, and vendors from last year’s event, Insomniac was forced to cover the remaining costs of Paradiso 2019, which included $215,055 to Paradigm Talent.
The lawsuit also details that Insomniac filed a termination of contract last September, giving USC Events ten days to respond. USC ignored the notice and began promoting Paradiso well into 2020—with teaser videos and all.
The judicial complaint terminates Insomniac and USC Events’ contractual agreement to co-produce Paradiso, ending a seven year relationship between the two companies. The suit also forbids USC Events from promoting Paradiso Festival or using its name or trademark.
Insomniac has also stated they wish to promote an event at The Gorge Amphitheater this summer, although without USC Events’ involvement.
Read the full complaint below.
H/T: EDM Identity.