The concert promoter has dropped the claim over the unfinished comeback performances.
Following the death of Michael Jackson in June 2009, AEG Live, the King of Pop’s concert promoter filed a $17.5 million business insurance claim due to the cancelled performances on the comeback tour, but this filing has now been dropped.
The claim had been made against Lloyds of London for the losses it faced that year.
The insurer had been refusing to pay the claim because it stated that AEG had been making false claims about the health of the singer, and this nullified the coverage from the policy. The reason that it has now dropped the business insurance claim is that Jackson’s estate has now reimbursed the amount from the losses.
One of AEG’s lawyers said that the reimbursement eliminated the need for the business insurance payout.
This decision to drop the claim from the business insurance policy came only a week after there were publications of internal emails that had been leaked from the promoters of Jackson’s concerts, in which concerns had been expressed regarding the health and stability of the 50-year old singer.
One of the emails, had been sent on the very day that Jackson was slated to appear in London for the announcement of the “This is It” performances. Its author was Randy Phillips, the chief executive at AEG, and he stated that Jackson was “locked in his room drunk and despondent.”
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A lawyer for AEG, Marvin Putnam, stated that the choice to drop the business insurance filing had “nothing to do with the recent leak.” Instead, lawyers have said that they believe that the material shared between the two sides was likely leaked in a separate legal case that exists between Katherine, Jackson’s mother, and AEG.
In that other case, Mrs. Jackson has accused AEG of increasing pressure on her son to perform in the comeback shows, which were sold out, regardless of the symptoms that he was showing that would indicate that he was not strong enough to carry on.
Lloyd’s of London lawyer, Paul Schriffer, said that “We are standing by AEG’s lawyers comments that the withdrawal of the claim was not related to the leaked emails.” The underwriters have agreed that they will dismiss AEG from the filing and waive any costs that AEG would have been able to recover, in exchange for withdrawing the business insurance claim.