A jury in Los Angeles found while AEG did hire Dr. Conrad Murray, the physician was not unfit or incompetent to treat Jackson at that time, entertainment news website TMZ.com reported.
A criminal trial jury previously found Murray ultimately did things later that killed Jackson and found him guilty of involuntary manslaughter. But because the civil panel found Murray was competent when hired by AEG, Jackson's mother, Katherine, and his three children are not entitled to damages from the entertainment company in his death.
The family contended AEG negligently hired and failed to supervise Murray, and pushed the 50-year-old singer too hard in preparation for his "This Is It" tour. They sought $290 million in personal damages and unspecified damages based on what the singer would have earned by performing had he not died.
AEG had claimed it was the singer who hired Murray and it had no idea what treatment Jackson was receiving from his physician.
The jury in the wrongful death case began deliberating Thursday.
Murray is serving a four-year prison sentence for administering what prosecutors called lethal amounts of sedatives and anesthesia in an effort to help Jackson sleep.