AEG dropping insurance claim over Michael Jackson death

Tue Sep 11, 2012 4:49pm EDT
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By Alex Dobuzinskis

LOS ANGELES (Reuters) - Michael Jackson's former concert promoter AEG Live is withdrawing a $17.5 million insurance claim in the 2009 death of the pop star amid revelations in leaked emails that show company executives were concerned about his stability ahead of his planned London comeback tour.

Attorneys involved in the case denied on Tuesday that AEG Live's move was related to the publication of the leaked emails by the Los Angeles Times on September 2.

Jackson died in June 2009 at age 50 from an overdose of the powerful anesthetic propofol and sedatives. Last year, a Los Angeles jury convicted the "Thriller" singer's physician, Conrad Murray, of involuntary manslaughter, but heard that Jackson was taking a cocktail of sleep aids and prescription medications.

AEG Live, the concert division of privately-held Anschutz Entertainment Group (AEG), had filed a claim seeking a $17.5 million insurance payment from Lloyd's of London for losses they incurred in up-front costs for Jackson's "This Is It" sell-out shows that were to start in London in July 2009.

Lloyd's later filed a lawsuit against AEG Live in Los Angeles Superior Court, seeking a declaration that the insurance company did not owe the money.

Marvin Putnam, an attorney for AEG, said the company no longer needed the $17.5 million because it was reimbursed by the Jackson estate for its concert-related losses and that it informed Lloyd's in June that it was withdrawing its claim.

Attorneys in the case told a judge on Monday that as a result they expected AEG Live to be dropped from the case, Putnam said. That has not yet officially happened, he said.

The insurance dispute is one of two major court cases stemming from Jackson's death.   Continued...

A sign is seen outside the entrance of the Jackson family compound in the Encino area of Los Angeles July 22, 2012. REUTERS/Phil McCarten