*Michael Jackson’s estate executors have settled a $17.5 million lawsuit filed against top insurance company Lloyd’s of London after they refused to pay out following the King of Pop’s death.
The King of Pop’s reps took out a policy on the singer’s ill-fated “This Is It” concerts two months before his passing in June, 2009, and made a claim for compensation when the shows were scrapped after his death.
Lloyd’s of London originally issued the policy to cover potential losses for the London residency, but in 2011, the company asked a judge in Los Angeles to declare the documents null and void, claiming Jackson lied about his medical history and drug addiction.
They insist the policy was restricted to “losses resulting from accident only,” stating the singer’s official cause of death was listed as homicide.
The case was due to go to trial next month but the two parties have reached an out-of-court agreement. The news was announced by both parties on Wednesday, but details have been kept under wraps.
Jackson died from a Propofol overdose in 2009. His personal physician, Dr. Conrad Murray, was convicted of involuntary manslaughter for administering the fatal dose of the anesthetic, and spent two years behind bars. He was released in October (13).
News of the insurance settlement emerges two days after a Los Angeles judge rejected Katherine Jackson’s latest bid for a new trial in her high-profile negligence case against “This Is It” promoters at AEG Live.