Lawsuit against Michael Jackson trust goes ahead

Michael Jackson

NEW YORK - A federal judge today allowed a breach of contract claim brought by a financial firm against Michael Jackson to move forward against one of Jackson's trusts.

The judge ordered all parties, including Jackson, to appear in court in September. A lawyer for Jackson was not immediately available for comment.

US District Judge Kevin Castel said Prescient Acquisition Group can proceed with a US$48 million ($79 million) lawsuit it filed in July 2005 against Jackson's MJ Publishing Trust, while dismissing other claims.

Prescient claimed the singer owed fees for the company's help in refinancing his bank debts and claiming a larger stake in a library of Beatles songs.

MJ Publishing Trust was formed by Jackson for the purpose of holding title to certain property rights, including libraries of songs written by Jackson and by the Beatles, and sought to dismiss the case.

"Plaintiff asserts sufficient facts to survive the motion to dismiss the plaintiff's breach of contract claim against defendant MJ Publishing Trust," the judge said.

Prescient claims it helped gain refinancing of a US$272.5 million bank debt of Jackson's as well as US$537.5 million in additional financing to buy the other half of The Beatles library of songs he did not already own, the lawsuit said.

- REUTERS