The 12-person panel agreed yesterday, that AEG Live hired Conrad Murray, but found that he was not unfit or incompetent for the job, which was one of the requirements for the Jackson lawsuit to succeed.
The jury had deliberated for three days after a five-month trial in which the Jackson family alleged that AEG Live negligently hired and supervised Murray.
AEG Live lead lawyer Marvin Putnam welcomed the verdict.
"The jury's decision completely vindicates AEG Live, confirming what we have known from the start -- that, although Michael Jackson's death was a terrible tragedy, it was not a tragedy of AEG Live's making," he said in a statement.
"We lost one of the world's greatest musical geniuses, but I am relieved and deeply grateful that the jury recognised that neither I, nor anyone else at AEG Live, played any part in Michael's tragic death."
Jackson died on June 25, 2009 from an overdose of the anesthetic propofol, given by doctor Conrad Murray at his rented mansion in Los Angeles, where he was rehearsing for the shows at London's O2 Arena.
Murray, a Grenada-born cardiologist, was convicted of involuntary manslaughter in a criminal trial in 2011 for giving the drug to the star -- who suffered from chronic insomnia -- to help him sleep. He was jailed for four years.
The "This is It" tour was Jackson's bid at a comeback four years after his infamous child molestation trial. He was acquitted, but his image was destroyed, and he desperately needed to make money.
The Jacksons wanted AEG Live to pay USD 85 million to each of the star's three children for emotional loss, and an unspecified amount for economic losses, estimated at up to USD 1.6 billion. AEG's lawyers called the figures ridiculous.
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