LAS VEGAS (FOX5) -- Renown DJ Kaskade filed a federal lawsuit against Palms Hotel Casino in District Court on Wednesday over the sudden closure of KAOS, alleging a breach of contract.
Kaskade, whose real name is Ryan Gary Raddon, and his attorneys argue that he signed a two-year contract with FP Holdings (the company that owns the Palms and was bought by Station Casinos) to preform 30 concerts throughout 2019 and 2020.
According to the lawsuit, Kaskade signed the contract with FP on Jan. 8, 2018, and performed during the first nine months of 2019. However, Kaskade claims in August 2019, FP began cancelling his concerts that were scheduled for October.
Kaskade and his attorneys said FP claimed the venue was being renovated, hence the cancellations. According to the lawsuit, Kaskade and his team claimed they gave FP a series of alternative dates for concerts that could be rescheduled for 2019.
Kaskade's attorneys allege that FP did not respond, or acknowledge, to the proposed rescheduling dates. Kaskade was still paid for the month of October, but FP cancelled another concert scheduled for Nov. 1, 2019 and failed to pay for the performance, Kaskade's attorneys claim.
A few days later, FP announced that KAOS nightclub and dayclub would be closed "effective immediately" on Nov. 5.
"As a result, FP is unable to provide Raddon with a suitable venue for either the remaining performances to be held in 2019 or the performances in 2020, which further breach of the agreement," the lawsuit said.
Kaskade and his attorneys wrote to FP on Nov. 13, claiming that FP had breached its contract with the DJ.
According to the lawsuit, Kaskade and his team are seeking damages, though the exact amount was redacted from public access to court records.
WORKERS ALSO SUING KAOS
A class-action lawsuit was filed on behalf of KAOS nightclub workers who allege that hundreds of employees were owed pay for 60 days. The suit was filed on Nov. 7, two days after the club's sudden closure.
The lawsuit claims nightclub workers were not given 60 days' notice under the federal WARN Act to notify employees of their job termination. A letter given to KAOS employees Nov. 5 notified workers of the club’s immediate shutdown and provided workers the option of two weeks of severance pay or 60 days of on-call employment; all jobs would be terminated in 60 days.
“We at this time are not going to take a measly two-week severance on behalf of the class, nor are we able to take the second option,” attorney Christian Gabroy said, arguing workers may be unwillingly transferred to different locations across the valley for temporary, unstable jobs.
Red Rock Resorts would not comment on pending litigation or disclose the number of employees affected.
Workers said the loss of a job will be tough over the holidays.
Nightclub industry insiders say it will be difficult during the "slower" winter months to find that many jobs for that amount of KAOS employees.