Las Vegas Sun

July 6, 2022

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Operator of defunct Wasted Space nightclub suing Hard Rock

Pink-Carey Hart

Hard Rock Hotel

Pink and Carey Hart at Wasted Space in the Hard Rock Hotel on New Year’s Eve 2008.

After the closing of the Wasted Space nightclub in September, the Hard Rock Hotel & Casino is being sued by its operator for alleged unseen profits during the club’s run.

The lawsuit by S&H Projects, led by professional motocross athlete Carey Hart, alleges that the Hard Rock “engaged in a series of improper and unacceptable accounting practices” in “an apparent effort to mask serious financial and management problems elsewhere within the resort.”

Hard Rock officials had no comment on the lawsuit.

Wasted Space was designed by Hart, who also operates the Hart and Huntington Tattoo Company inside Hard Rock. The club brought in high-profile investors, including musicians Joel and Benji Madden and baseball star Jason Giambi.

The suit alleges that the Hard Rock “engaged in a systemic pattern of failing to attribute revenues due to the Wasted Space Lounge while simultaneously attributing expenses from other venues at the resort to the lounge.”

S&H was also denied full access to all books and records of revenue and expenses related to the Wasted Space Lounge for accurate accounting, the lawsuit alleges.

Hart’s company is suing for actual and compensatory damages against the Hard Rock in excess of $10,000 and is being represented by the Lewis and Roca law firm.

Branded as Hard Rock’s “anti-club,” Wasted Space opened in July 2008 with the idea of a looser dress code than other nightclubs and a place for performers to play more intimate shows.

The decision to close the club came in August to make room for a new race and sports book, Hard Rock spokeswoman Jessie Pound said in August.

Hard Rock Chief Executive Joseph Magliarditi said then he wouldn’t comment on the closure of Wasted Space or the financial performance of the nightclub because the club is a partnership between Hart and Hard Rock. Hard Rock said Wednesday it has no comment on the most recent allegations.

According to an annual filing with the Securities and Exchange Commission in March, Hard Rock said revenue at Wasted Space increased by $1.6 million in 2009, although other numbers for the club weren’t listed in the filing.

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