AEG drops Michael Jackson $17.5 million insurance claim

By Daniel S Levine,

AEG, the concert promoter that was working on Michael Jackson’s ill-fated This Is It shows, decided to drop its $17.5 million insurance claim on Monday. The move comes just days after a series of damaging emails were leaked to the press, although the company denies that it has anything to do with the emails.

According to CNN, a Lloyds of London underwriter had been suing AEG and Michael Jackson LLC for not revealing key information about the singer’s health when they applied for insurance policies.

Marvin Putnam, a lawyer for AEG, told CNN that the decision had nothing to do with the emails published by the Los Angeles Times last week. AEG had been planning to do this for months.

As we previously reported, the LA Times acquired 250 pages of AEG emails between staffers. Many showed that AEG seemed to be aware of Jackson’s health problems and addictions and were questioning the financial cost of dealing with Jackson. One email even suggested that a staffer witnessed Jackson’s addictions firsthand. Still, the company proceeded with the shows, which would have been a series of 50 performances at London’s O2 Arena.

A rep for Lloyds of London told CNN that they will drop the lawsuit against AEG, but will still go forward with the suit against Jackson LLC. “The insurance case continues against the Michael Jackson Company LLC for, among other things, rescission of the policy due to nondisclosures of Michael Jackson's prior drug use,” the rep stated, notes TMZ.

Jackson died on June 25, 2009 from an overdose of a surgical anesthesia and sedatives. His doctor, Conrad Murray, was found guilty of involuntary manslaughter last year.

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