AEG

The company that sued Michael Jackson for allegedly torpedoing a family concert has just filed a $300,000,000 creditor's claim against MJ's estate.

AllGood Entertainment claims it had a deal with Jackson to put on a Jackson family concert and alleges the deal was broken when Jackson committed to the London series of concerts. In the $300,000,000 federal lawsuit filed in October 2009, AllGood was asking for profits from "This Is It" along with revenues from the Sony catalog.

AllGood claims Michael Jackson and his agent, Frank Dileo, "secretly teamed up with AEG [Live] to produce a concert or series of concerts in London."

AllGood Entertainment filed the claim Friday.

UPDATE: Howard Weitzman, lawyer for the Michael Jackson estate, tells TMZ, "AllGood's creditor's claim and its underlying lawsuit are frivolous and wholly without merit."

This all went down as Randy watched Dr. Murray get arraigned on involuntary manslaughter charges in the death Michael Jackson.

As we first reported, Dr. Conrad Murray may sue AEG for $300,000 -- the money he claims he's entitled to under a contract he signed with AEG to provide MJ with medical services. But sources connected with AEG tell TMZ the contract was never signed.

We're told a contract was drafted but it required three signatures -- AEG, Michael Jackson and Dr. Conrad Murray. Sources say Dr. Murray signed the contract and sent it to AEG but neither AEG nor MJ ever signed it.

The contract, we're told, also said it expressly hinged on Jackson signing.

Sources say AEG is drawing a hard line. They will not pay Murray a penny.

AEG owes Dr. Murray $300,000, according to Miranda Sevcik, publicist for Dr. Murray's lawyer, Ed Chernoff. Sevcik claims AEG has been "dragging its feet," even though the Dr. has requested payment for 2 months of services.

Sevcik says Dr. Murray has not been paid a penny for his services, in spite of the fact that the doctor claims to have signed a binding deal with AEG before giving up his medical practice.

Sevcik says Dr. Murray will not file a creditor's claim against Jackson's estate. She says, "Dr. Murray needs the money and he's entitled to the money based on the contract he signed with AEG."

AEG could not immediately be reached for comment.

Several witnesses expected to take the stand today as lawyers for Michael Jackson's estate -- as well as lawyers for Katherine Jackson and Michael's kids -- give testimony about the proposed deal with AEG about a Jackson memorabilia tour.

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UPDATE 7:21 PM ET -- The petition has been approved!!! The AEG deal is done, the memorabilia tour will happen. Finally. The three-city tour could earn as much as $6 million for the estate.

UPDATE 7:20 PM ET -- An attorney for Katherine wants more protections in the agreement to protect the estate and Michael's legacy.

UPDATE 7:14 PM ET -- The attorney for Michael's kids is in favor of the AEG deal.

UPDATE 7:07 PM ET -- And we're back!

UPDATE 5:50 PM ET -- The court has been closed again as one of the senior lawyers for AEG has taken the stand. Outside of court, Taj told reporters the family is more interested in protecting Michael's legacy than in making money. He also told Taj that he planned to do film after the London tour.

Katherine Jackson won't give her blessing to a key deal in Michael Jackson's estate until her financial peeps have a chance to review it.

Katherine's lawyers went to court today, asking the judge to give her permission to show the confidential AEG memorabilia deal to her financial advisors. Under the current court protective order, she's only allowed to show the unredacted version to her lawyers.

Meanwhile, AEG is threatening to pull out of the deal, because the company is worried people are quickly losing interest in an MJ memorabilia tour.

Katherine's lawyer, Burt Levitch, thinks AEG may be crying wolf just to ram the deal through.

AEG has no comment on the matter.

It looks like the insurance policy taken out on Michael Jackson to cover tens of millions of dollars in losses in the event of the singer's death may be a bust.

The Lloyd's of London policy -- taken out by AEG in case Jackson didn't perform his London concerts -- did not cover death related to illegal drug use. According to the policy, obtained by the L.A. Times, "This insurance does not cover any loss directly or indirectly arising out of, contributed, to, by or resulting from ... the illegal possession or illicit taking of drugs and their effects."

As we first reported, authorities believe the powerful anesthetic Propofol caused Michael Jackson's death. Although the drug is legal, it should never be administered at someone's home, according to all the medical professionals with whom we've spoken. That could constitute an "illicit" use and, depending on how the prescription was written, an illegal use as well.

And, according to the Times, the policy only covered losses as the result of an accident. The only way the policy would have covered death is if a second physical had been performed on Jackson -- and it wasn't. And, even if a second physical was performed, it almost certainly would not cover the circumstances surrounding Jackson's death.

The policy covered $17.5 million. AEG reportedly claims it's in the hole $30 mil.

UPDATE: Sources familiar with the insurance policy tell us ... if proceeds are recovered they would all go directly to Jackson's estate. We're told Katherine was given a copy of the policy yesterday.

We're also told the physical performed on Michael back in early February in connection with the policy was hand-picked by the insurance company -- not AEG. Our sources say the 4-hour exam -- which was performed in L.A. by Dr. David Slavit -- included blood work. The policy was issued in mid-April.

New court documents in the Michael Jackson estate case reveal Columbia Pictures scored the footage of Michael Jackson's rehearsals and preparations for his London concerts ... but the studio is paying a hefty price.

Columbia will create a movie from the footage. Under the terms of the deal, the Jackson estate will get 90% of the profits and AEG will get the remaining 10%.

UPDATE: TMZ has learned AEG has dropped off the $90,000 to the L.A. Police Foundation -- as promised.

We're told part of the money will go to build a memorial for fallen officers in front of the new police headquarters in downtown L.A.

AEG is finally putting its money where its mouth is -- saying they will follow through with their promise to donate money raised at the Michael Jackson memorial to the L.A. Police Foundation.

The timing couldn't be more impeccable, considering we broke a story yesterday that the L.A. City Attorney was investigating AEG for not forking over the money.

According to the LA Times, the company plans to make a $90,000 donation today from money made on the sale of 18 suites for the July 7th memorial at the Staples Center.

As we first reported, the L.A. City Attorney is investigating AEG for holding out on the donation -- and they believe AEG should pay for sanitation, transportation, street services and LAPD protection expenses, an amount which is estimated to go into the 7 figures.

We've learned the L.A. City Attorney is investigating AEG for allegedly making promises to people who paid thousands of dollars to attend the Michael Jackson memorial ... but not delivering on its promise to donate the money to the LA Police Foundation.

Sources in the City Attorney's office tell us complaints have been lodged by people who bought suites for the July 7th memorial at the Staples Center. People who paid $5,000 for a suite claim AEG promised the money would be donated to the LA Police Foundation but AEG has not yet delivered a cent.

A rep for AEG told TMZ there were 18 suites that went for $5,000 a pop and AEG did indeed promise the money would be donated to the Police Foundation. The rep said AEG is still doing a final accounting of the event and "We have every intention of making this donation."

AEG says the city is trying to get way too much -- 7 figures -- out of them for the event. But the City Attorney believes AEG is on the hook for expenses including sanitation, transportation, street services and LAPD protection -- and that does indeed go into the 7 figures.

AEG has filed legal papers asking for a heads up on all matters relating to the probate of Michael Jackson's estate.

The papers entitle AEG to receive all legal papers, including notices of court hearings, connected to the probate.

It's unclear if AEG is teeing up a financial claim against the estate.

An AEG rep says they have an interest in the probating of Jackson's will because "a vast majority" of the money the company will generate will go into the estate.

Councilman Dennis Zine told KTTV today that taxpayers "are getting ripped off" because AEG made $50,000 by charging the media to use risers outside the venue. Zine said AEG should grow a pair and cough up some cash.

AEG President Tim Leiweke immediately swung back, saying Zine was out of line because the company helped secure funds for the L.A. Lakers championship parade last month.

The deadline to pick up Michael Jackson memorial tickets is causing a frenzy, because some of the ticket holders -- especially those who live out of state -- can't make it to the ticket counter by the 6PM deadline.

Right now, anyone who was selected to attend must present the voucher for their tickets by 6PM at Dodger Stadium.

An AEG spokesman tells us they've been receiving complaints and are now considering pushing the deadline.

Stay tuned...

A spokesperson for Lloyd's of London tells us she's never heard of a case where her company has insured someone for a drug overdose.

AEG, the company that was promoting Jackson's London concerts, claimed yesterday the policy it took out from Lloyd's did not cover death from natural causes but did cover overdoses.

Louise Shield -- the head of communications for Lloyd's of London -- tells us such a policy is "odd" and that she's never heard the company insuring for drug overdoses.

What's more -- Shield says the company typically requires a "medical assessment" .... a physical before the policy is written.

As we first reported, Jackson's body had dozens of injection sites in various places. So the question -- how could a policy be issued with clear evidence of a problem?

AEG and reps for the Jackson family just announced a memorial service for Michael Jackson will take place at the Staples Center on Tuesday at 10:00 AM.