Jacko settles €10m lawsuit

Michael Jackson has settled a potentially embarrassing €10.25m lawsuit which threatened to disclose the state of his finances.

The King of Pop had faced claims from his former business advisers, Union Investment, that he had squandered a £350m (€498m) fortune and was close to bankruptcy.

The company alleged Jackson owed them millions of pounds in unpaid fees and expenses.

But the star’s legal team agreed an out-of-court settlement with the firm one week before the case was due to go to trial.

Jackson’s lawyer, Zia Modabber, said the performer was “thrilled” with the outcome.

“It just got to a point where we agreed on what we needed to do.”

It was expected that the trial would be televised live, bringing more embarrassment for the singer who has already faced extensive speculation about his finances.

Court papers from the case filed in Los Angeles claimed Jackson was a “ticking financial time bomb waiting to explode at any moment“.

Details of the settlement were kept secret.