Concert promoter AEG -- the company behind Michael Jackson's "This Is It" tour -- has dropped its claim to collect on a $17.5 million insurance policy it took out on his planned comeback concert series. The move comes after the insurance company alleged AEG knew about and covered up Jackson's extensive drug and health issues.
AEG announced the move Monday night, saying it had contemplated the decision for months and that it has nothing to do with the discovery of new e-mails showing AEG had doubts about Jackson's health when it applied for the policy.
Lloyd's of London sued both AEG and Michael Jackson LLC after Jackson's death to cancel the policy, saying the promoter and Jackson's camp weren't honest about the singer's drug addiction and failing health.
A Lloyd's official told CNN, "In exchange for AEG withdrawing its insurance claim, underwriters agreed to dismiss AEG from the case and to waive any costs recoverable from AEG."
The insurance company said it won't drop the suit against Michael Jackson LLC, saying it will seek "rescission of the policy due to nondisclosures of Michael Jackson's prior drug use."