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Alan Duke CNN
Published: 10 September 2012

LOS ANGELES (CNN) -- AEG dropped its claim Monday for a $17.5 million insurance policy for Michael Jackson, just days after e-mails revealed the concert promoter had doubts about Jackson's health at the time they were applying for the insurance.

A Lloyds of London underwriter sued AEG and Michael Jackson LLC after Jackson's 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."

Lawyers for AEG and the Michael Jackson estate, which controls Michael Jackson LLC, did not immediately respond to CNN's request for comment Monday.

Jackson died of an overdose of a surgical anesthesia in combination with sedatives on June 25, 2009, according the the Los Angeles County coroner. Dr. Conrad Murray was found guilty last year of involuntary manslaughter in Jackson's death.

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.

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