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Lloyd’s of London has gone to court … asking a judge to let the company off the financial hook, claiming it doesn’t owe the Michael Jackson Estate $17.5 million on grounds MJ was a fraud.

The company issued the muilti-million dollar policy to cover the doomed “This Is It” tour for losses.

But Lloyd’s claims it doesn’t have to honor the policy for 2 primary reasons:

1.   Michael Jackson and AEG allegedly lied about Michael’s medical history — specifically, MJ said he had not seen a doctor other than a cosmetic MD since June, 2005.

2.  Michael did not disclose he was taking prescription drugs prior to and at the time of his death — including Propofol.

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