The California park announced that unresolved legal issue have caused the park to no longer pursue plans to install a model of the Pop Icon.
On July 2, 2009 Legoland California announced that it has stopped its plans to install a model tribute of Michael Jackson in the park’s famous Miniland U.S.A. attraction.
Earlier this week the park announced plans to create a Mini LEGO Model of Michael Jackson. This addition was to be the installed outside of the famous Grauman’s Chinese Theater.
Despite how the park was “looking forward to installing a small tribute to Michael Jackson in Miniland,” according to Peter Ronchetti, the General Manager of Legoland California Resort, “legal matters have come to light that prevent us from displaying the model in the Park.”
For further information on LEGOLAND California and its attractions, visit www.LEGOLAND.com.

Who sued? Accusing the park just trying to benefit?
Maybe they were afraid that they'd actually use remains of Michael Jackson.
They can be put next to the elephant mans remains