AEG drops insurance claim

AEG dropped its claim Monday for a $17.5 million insurance policy for Michael Jackson, just days after the e-mails in which was said that the concert promoter had doubts about Michael Jackson's health at the time they were applying for the insurance, were leaked. Shortly after, Katherine Jackson's business partner, Howard Mann, took the blame for the leak. 

AEG lawyer Marvin Putnam told CNN later Monday the move has been in the works for months and is not connected with the controversy over the e-mails.

A Lloyds of London underwriter sued AEG and Michael Jackson LLC after Jackson's death, claiming they failed to disclose information about Michael Jackson's health and drug use in the attempt to avoid the payment.

"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." The Michael Jackson Estate, which controls Michael Jackson Company LLC, is still pursuing the insurance payout, its lawyer said Monday.

According the the Los Angeles County Coroner, Michael Jackson did not abuse of any substance. 

A controversy over the insurance claim erupted last week after the Los Angeles Times published e-mails which the insurance lawyer said had not been provided to him despite a year of discovery in the case.