Lloyd's of London: MJ Lied, So We Won't Pay

Lloyd's of London has gone to court ... ask a judge to allow the company stalled financial, saying he does not like Michael Jackson Estate $ 17.5 million on grounds MJ was a fraud.

The company has issued to multi million dollar policy to cover the condemned "This Is It" tour losses.

But Lloyd's claims that he did not honor the policy for two main reasons:

1. Michael Jackson and AEG have lied about his medical history to Michael - more precisely, 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 before the time of his death - including propofol.

Lloyd's asked the court to declare that the policy is null and void due to alleged fraud.

Howard Weitzman, the lawyer for the estate, "This lawsuit is nothing more than an insurance company trying to avoid paying a legitimate right of the insured."