A LOS ANGELES judge yesterday tossed out Michael Jackson's $US10 million lawsuit against a man the former pop star had accused of stealing memorabilia from him.

The federal court judge said inside court that Jackson had stopped pursuing the case he filed two years ago against Henry Vaccaro of Monmouth County.

Perhaps the singer, now exiled in Bahrain, after beating a child molestation rap, cannot afford more legal bills in the wake of his recent, well reported, near-bankruptcy experience.

Or perhaps he can't avoid the negative publicity his involvement in yet another criminal trial would generate.

Outside the court, Vaccaro said he had been awarded the memorabilia after years of legal wrangling that stemmed from a failed business venture that wound up in bankruptcy court.

The construction company owner had a warehouse full of items from Jackson family members that included financial documents, gold-trimmed stage costumes, letters and awards.

Vaccaro’s attorney alleged the memorabilia also included soiled underwear, sexual videotapes and paraphernalia, a personal stash of skin bleach, and a hand-drawn picture by Jackson of a 7-year-old boy.

The exiled singer had originally sued in the belief that some of the items still belonged to him, because Vaccaro only had a right to property belonging to his parents and brothers, Jermaine and Tito.

Jackson originally got a court order barring Vaccaro from displaying or selling the items.  However, Vaccaro said that before the order was issued he had sold some memorabilia to a European buyer.