Michael Jackson insurance claim dropped

Michael Jackson Jackson died in June 2009 from an overdose of the anaesthetic propofol

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Michael Jackson's former concert promoter AEG Live is withdrawing a $17.5m (£10.9m) insurance claim over the singer's cancelled comeback gigs.

AEG had filed the claim against insurer Lloyd's of London for its concert-related losses in 2009.

However, the insurance company sought to nullify the policy, saying AEG made false claims about Jackson's health.

A lawyer for AEG said the company dropped the claim because it had been reimbursed by the singer's estate.

The move comes a week after the publication of leaked internal emails from the concert promoters which saw them voice concerns over the 50-year-old's stability and health.

In one email, sent the day the singer appeared in London to announce his This Is It shows, AEG chief executive Randy Phillips described the singer as "locked in his room drunk and despondent".

The company's lawyer Marvin Putnam said the decision to withdraw the insurance claim had "nothing to do with the recent leak".

Lawyers said they suspected the emails were leaked from material shared between the two sides in a separate legal case between AEG and Jackson's mother, Katherine.

Mrs Jackson has accused the promoters of pressuring the singer to carry on with the sold-out comeback shows despite indications he was too weak.

"We are standing by AEG's lawyers comments that the withdrawal of the claim was not related to the leaked emails," Paul Schriffer, a lawyer for Lloyd's of London said.

"In exchange for AEG withdrawing its insurance claim, underwriters agreed to dismiss AEG from the case and to waive any costs recoverable from AEG."

Michael Jackson died on 25 June, 2009 from an overdose of the anaesthetic propofol.

Last November his personal physician, Conrad Murray, was convicted of his involuntary manslaughter and sentenced to four years in jail.

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