AEG Drops Insurance Claim on Jackson Death

AEG DROPS INSURANCE CLAIM: When AEG’s Randy Phillips called Michael Jackson’s death “a terrible tragedy…but life must go on,” he also added, “AEG will make a fortune from merch sales, ticket retention, the touring exhibition and the film/DVD.” In the wake of those e-mails being made public last week, revealing AEG execs doubted Jackson’s health at the time they were applying for coverage (see Rumor Mill items below), AEG has dropped its claim for a $17.5 million Lloyd’s of London insurance policy on the late superstar. A company underwriter sued AEG and Michael Jackson LLC after his death, claiming they failed to disclose information about the pop star's health and drug use. "In exchange for AEG withdrawing its insurance claim, underwriters agreed to dismiss AEG from the case and to waive any costs recoverable from AEG," said Paul Schrieffer, attorney for the insurance underwriter. "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." A civil suit filed by the family against AEG is ongoing. (9/10p)