Nope, they didn't really blackmail. They more or less just went for it head-first and made up a bunch of crap. MJ didn't want to cause a big scene (it's not like he had enough publicity in the first place :/ ) so he just gave up the money. Money isn't everything to some people I guess....
@charlie1239: You do realize being blamed for that in which he did not do, drove him insane right? Proof of this is he was normal before this person wanted a bunch of money from him, in which this was the perfect scheme to get it.
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Nice!
Nice tribute