The Jackson matriarch admitted that she was surprised to learn that her son was having financial issues before his 2009 death.
"I heard that from different people," she said in front of a jury. "I heard for years that Michael Jackson was broke but he wasn't."
Katherine also told the courtroom that she didn't believe that Michael was responsible for his own death. But when AEG lead counsel Marvin Putnam asked if she had been in attendance for Conrad Murray's manslaughter trial and whether she assisted the District Attorney in his prosecution, she said she "didn't remember."
She added that Michael only gave Dr. Murray money out of pity and that he was hired by AEG and not her son.
"[Michael] felt bad for Dr. Murray because he didn't have no money," she said.
The 83-year-old explained that she never saw her son under the influence of drugs and never saw him "loopy or out of it."
Katherine explained that her other children had expressed concern that Michael may have had a problem with prescription drugs, but he ultimately denied it when she confronted him.
She said that his denial didn't surprise her because what son would want to tell their mother about their possible drug abuse.
"I knew he was taking them [pain pills] but I didn't know he was abusing them," she said.
Towards the end of her testimony, she revealed that she took part in an intervention at the Neverland Ranch in 2002.
She said that Michael was upset "because when we got there, there was nothing wrong with him."
She later said that Michael was angry to the point of yelling at his family members and that she was embarrassed to be present for the incident.
Katherine also then said she did not remember a doctor talking to her about Michael getting a Narcon implant to curb his drug use. Right after Katherine told the court that to her knowledge Michael was not addicted to painkillers, attorneys for AEG played her interview with Oprah in 2010 where she made contradictory statements and admitted that Michael was addicted to drugs.
She also later admitted that besides Michael's monthly checks, Katherine received $10,000 a month from daughter Janet. She also said she currently does not own a computer and does not know how to send an email.
She concluded her testimony by saying that AEG did nothing to commemorate Michael after his death. She said they never sent her flowers or a card. But then she admitted they did put on a big event celebration on the Staples Center.
The judge dismissed her in the afternoon after almost two full days on the stand.