Legal News

The troubled legacy of the King of Pop

By Richard Binder

To say Michael Jackson's death was the most noteworthy news item yesterday is an understatement. As seemingly the entire world mourns his passing, everything about the King of Pop is under scrutiny, from the circumstances surrounding his death to his continuing legal and financial woes.

Despite having earned a reportedly $500 million by 2003, Jackson had also fallen into deep financial distress, owing as much as $200 million to creditors including Sony, his record label. His troubles stemmed from an increasingly extravagant lifestyle as well as legal costs arising from two molestation suits.  The first case was settled for $20 million and the second went to court in 2005.  Jackson was acquitted in that case after nine months.

Last November, after defaulting on a $24.5 million loan, Jackson had to hand over the title on his Neverland estate in California to a company made up of himself and Los Angeles-based real estate investment trust Colony Capital LLC. Colony Capital has been sprucing up the ranch and planned to sell it, according to the Wall Street Journal.  Jackson was about to embark on a 50-concert run in London, which in addition to possibly revitalizing his career could also have increased the value of his estate.

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Full post as published by Legal Pad | LA on June 26, 2009 (boomark / email).