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Michael Jackson

AEG Drops $17.5 Mil

Insurance Claim

9/11/2012 7:25 AM PDT BY TMZ STAFF
breaking news

0911_mj_aeg_01
The concert promoter behind Michael Jackson's ill-fated "This Is It" tour has dropped its claim to collect on a $17.5 million insurance policy for the singer ... after the insurance company claimed AEG hid the extent of MJ's extensive drug and health issues.

AEG announced the move last night ... claiming the company has been contemplating the decision for months and it has nothing to do with the discovery of new emails that show AEG had doubts about MJ's health around the time the company applied for the insurance policy.

FYI -- the insurance company, Lloyds of London, had sued both AEG and Michael Jackson LLC in the wake of MJ's death to cancel out the policy. L.O.L. has claimed AEG and MJ were not forthright about the singer's drug addiction and failing health at the time they applied for the policy.

Now, a rep for Lloyds tells CNN ... "In exchange for AEG withdrawing its insurance claim, underwriters agreed to dismiss AEG from the case and to waive any costs recoverable from AEG."

Lloyds says it's NOT dropping the case against Michael Jackson LLC -- explaining they will press on seeking "rescission of the policy due to nondisclosures of Michael Jackson's prior drug use."

168 COMMENTS

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1.

john wayne gacy    

they can recoup the cost with
smelling salts and a heater;

743 days ago
2.

non fan    

Omg! He was disgusting

743 days ago
3.

LAChic901    

Poor Michael
Follow me on instagram @ c703

743 days ago
4.

lbs    

"YOU BOUGHT IT!!!"....All those companies cared about was $ ...

743 days ago
5.

Raejean    

Now, will this stop the conspiracy theories that AEG had him killed?

743 days ago
6.

Max Smart    

"nondisclosures of Michael Jackson's prior drug use" - These people must have been living in a tent. Even my grandmother was aware of Michael Jackson's prior drug use. I think the insurance company should cough up the money for this - they knew exactly what they were getting into. It would have even been less of a risk to insure Lindsay Lohan's car

743 days ago
7.

dd    

OKAY NOW I KNOW THIS WAS A CONSPIRACY....THEY ARE GUILTY TOO!

743 days ago
8.

Parker    

If AEG was denied payment from Lloyd's because they lied about MJ's health then his mothers wrongful death suit would have been a shoe in. Kathren could have stuck it to them for way more then 17.5 million. She still has a good chance of winning the wrongful death claim in light of the leaked emails. MJ's was correct when he told every one he was worth way more dead then alive.

743 days ago
9.

BNWW    

Ah yes, TMZ was on a mission to destroy the Jackson family in an effort to support AEG, John Branca, John McClain, etc. and NOW the truth continues to seep out. TMZ, get over that mission! As I've noted before, AEG, Branca, McClain NEVER had Michael Jackson's best interest at heart. They were (and ARE) out to use him and now get all they can from his estate. I'm sure TMZ hates reporting these facts about sleezy AEG!!

743 days ago
10.

D. Potter    

Is O.J. Simpson Khloe's Kardashian's love child?

743 days ago
11.

Elizabeth    

Poor Michael is what comes to mind! AEG- should of been helping their client Michael out more than they were doing by getting him straight to a hospital, or a rehabilitation centre, and saving his A$$..

743 days ago
12.

Kevin    

I'm pretty sure LOL is not a standard abbreviation for Lloyd's of London.

743 days ago
13.

King of TMZ    

Taa heeeee heeeee! Whooooooooooooooooow :D
Shamon Shamon! Awhhh! :)
Go East Go West MJ is the Best
Go Past Go Future MJ is da Teacher
Give it up for the #BAD Beast :D
Awhhhh! :D

743 days ago
14.

northern gypsy    

nice try AEG ...did you really think Lloyds would just cough up the $$$ ??? savvy move on your part (aeg) cut your losses and move on...can't say the same for MJ LLC...what planet was MJ on when he applied for insurance ??? unleash the lawyers !!!

743 days ago
15.

kim    

Little late, huh TMZ??? This story came out yesterday morning.

I knew AEG wouldn't win this. Not after those emails leaked out. AEG is not the only villians here. No one surrounding him tried to help him including his own family. All about the benjamins. If you don't believe me, everyone take a look one more time of those photos taken in May of 09 of that family gathering. He didn't look alright even there and that family did nothing than.

Shame on AEG and the family.

743 days ago
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