The family lost their attempt to reverse a jury's decision in 2013 that concert promoter AEG Live is not responsible for the singer's death, reported Ace Showbiz.
In the lawsuit filed in 2010 by Michael's mother Katherine Jackson, the family was seeking USD 1.5 billion in damages.
The family claimed AEG Live had negligently hired Dr Conrad Murray, who was convicted of involuntary manslaughter for giving Michael the anaesthetic that led to his death.
"AEG hired Dr Conrad Murray as Michael's personal physician for a concert tour. Michael died of acute propofol intoxication while under Dr Murray's care," the lawsuit stated.
"The undisputed facts establish that Dr Murray was an independent contractor as a matter of law, AEG is not liable under the peculiar risk doctrine as an independent contractor and Dr Murray is not an agent of AEG.