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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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16.

mj fan forever    

AEG could provide Michael Jackson with TRUE doctors instead of that disgusting murderer, but Randy Phillips even said he even trusted murderer!!! Even after murderer claimed Michael was fine after Kenny Ortega told Randy Phillips the opposite!!! AEG should just go to hell!!!! And Lloyd's of London is just pathetically trying not to pay out by saying Michael Jackson was a drug addict and there is NO prior drug use to report since he was NOT a drug addict as the Coroner's report and testimony stated!!! This bunch of parasites definitely needs to pay ALL the money to the Estate!!!

739 days ago
17.

lauren    

DID ANYONE NOTICE THAT THE LIVE WITH KELLY SHOW CUTEST KID IN AMERICA CONTEST HAS 6 FINALIST AND THEY ARE ALL WHITE? NOT EVEN HISPANIC OR BI-RACIAL.
I AM NEVER, EVER, WATHCHING THE SHOW AGAIN!
P.S. THEY SAID AMERICA VOTED AND THE STAFF ...." NARROWED IT DOWN" . I COULDNT BELIEVE IT, THIS KID WILL WIN $25k~

739 days ago
18.

debi bowdle    

What is with all of the haters? The man was not found guilty of ANY crimes..did you live with him?..I am so over the hate..Michael had a good sole..his music was for his fans who he adored.. Did he hurt any of you..no he did not let the man rest in peace..at least for his children's sake..Please

739 days ago
19.

Rita    

Why are they still suing Michael Jackson LLC, if it was AEG that took the policy. This story makes no sense as it appears that nobody has been truthful about Michael Jackson last days and death. I believe there is more to it. If they cared about him, they should have postponed the show, they DID NOT!! Michael Jackson has to be in a better place than Earth. I believe that with all my heart. He was dealing with some very SHADY PEOPLE.

739 days ago
20.

janet    

This is such a joke. No way Lloyds of London was going to pay.


Don't forget Jackson insisted on Murray because he needed Murray for clean scripts. The London Drs. wouldn't do that for Jackson.

Hey it was Jackson who pushed for the tour nobody approached him. Jackson was broke and in a boatload of debt. He needed the money.


Jackson knew he was in no condition physically or mentally to do a tour.


The only one who killed Michael Jackson was Michael Jackson.

739 days ago
21.

Marie    

Michael Jackson should have just filed for bankruptcy and not agree to do those 'This is it' concerts and save his life. He was not fit physically and mentally to perform again.

739 days ago
22.

katie10    

Ah...cause (drum roll please) MJ ain't dead.

739 days ago
23.

The New Improved Sock Puppet    

I am shaking my head over the fact that AEG was going to underwrite a gazillion dollar insurance policy and not have their own extensive medical evaluation of the cash cow? I think there are a few paragraphs missing somewhere.

739 days ago
24.

Phishie from Philly    

They weren't kidding about the This is it tour.
..
Phishie from Philly

739 days ago
26.

RO    

this seems like a greedy hot mess!!!

739 days ago
27.

myopinion    

They backed out because they know that they will NEVER collect on the life insurance.

739 days ago
28.

janet    

Sounds like Lloyds of London is going after Jackson LLC for attempted insurance fraud. That's never good.


Jeez, the guy barely made the 1 rehearsal.

739 days ago
29.

anni    

I HATE when a pix of this big old rotting dead pedophile pops up. Just a freak! Thanks for the music, ass hole.

739 days ago
30.

black or white    

come out, come out wherever you are rabids. i miss you all dearly. you know who you are. come out rabids...this is a ground breaking, hot topic for you all. im sure you are reviewing all the do***ents and the like before you come out. dont worry, nothing much has changed. hes still a freak pedo. you are all still the rabid fans. and people like me are here to make your lives miserable, because you all think you know it all.

739 days ago
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