UPDATE: President and CEO of AEG Live has released the following statement to E! News:
"We are aware of the allegations which we believe are completely meritless. Rehearsals have been uninterrupted and continue on schedule."
A promoter tells E! News that he's willing to go to court to shut down the King of Pop's multi-night stand at London's O2 arena because it violated an earlier deal Jackson's manager had signed for a Jackson family reunion show that included a reunited Jackson 5 along with sister Janet.
"We have a noncompete [clause]," says Patrick Allocco, president and CEO of AllGood Entertainment. "Prior to our show, Michael cannot perform anywhere in the world."
According to Allocco, Jackson's manager, Frank Dileo, signed the deal last November committing the King of Pop and the rest of the clan to a show scheduled for July 3, 2010 in Austin, Texas. But Jackson's solo stand is set to kick off this July.
Allocco claims he was willing to negotiate when Jackson showed an interest in the AEG-sponsored O2 Arena concert series in London, but efforts to resolve the situation were rebuffed.
Allocco says the 50-year-old Moonwalker is set to gain nearly $24 million for the Texas show.
For now, the promoter is going forward with plans to file a lawsuit against the pop star by the week's end. But Allocco & Co. will have to get in line. The perpetually targeted Jackson was just tagged with a pair of new lawsuits by his former manager/publicist and his "Thriller" video costar.
Dileo, AEG, and Jackson's rep were unable to be reached for comment.
—Additional reporting by Ashley Fultz