Jackson, Sheikh settle $7m lawsuit

Jacko disappoints fans by cancelling an appearance in court after the eleventh hour settlement

Michael Jackson has reached an out-of-court settlement with Sheikh Abulla bin Hamad Al Khalifa over a lawsuit of $7million, his spokesperson said.

The singer was earlier scheduled to appear in the Royal Courts of Justice here on Monday to give evidence in the case against the Sheikh, who claimed that Jackson owed him money for defaulting on an exclusive singing deal, The Guardian reported.

“As Mr Jackson was about to board his plane to London, he was advised by his legal team to postpone his travels, since the parties had concluded a settlement in principle,” a spokesperson of Jackson said.

It is, however, a disappointing development for Jackson's fans as the pop king's visit was one of the most eagerly awaited court appearances of the year.

The Sheikh claimed that he and Jackson entered into a “combined rights agreement” under which the singer committed himself to repay USD 7 million spent by the Sheikh out of royalties the singer earned from records produced at the Bahrain studios.

The singer said that there was no valid agreement, and the case was based on “mistake, misrepresentation and undue influence”.

He said the money paid by the sheikh — on utility bills for his Neverland ranch, accommodation and the legal costs of his criminal trial — was a gift, the paper said.