Katherine Jackson is apparently "devastated" about the outcome of Michael's wrongful death case.

Yesterday a jury cleared AEG Live of the negligence charge brought by the Jackson family.

The case was filed in connection with the hiring of Michael's physician, Dr Conrad Murray, before the singer's comeback concerts and his family are apparently upset by the decision made on Wednesday.

“They were counting on at least $2 billion, so there's no question that those who wanted this suit are devastated,” a source told FOX411.

“Katherine wanted the money because the Jacksons don't have what people think they do. She gets money from the estate as does Prince, Paris, and Blanket, but once Katherine dies, she has nothing to leave her children, Jermaine, Jackie, etc… There is now going to be a lot of in-house fighting.”

The court acknowledged that AEG Live had hired the doctor, but decided he was competent.

Michael's family was suing the company for apparently being negligent when deciding on the medical expert.

The physician is currently in prison for administering a lethal dose of Propofol to the late King of Pop to help him sleep.

“He wasn't unfit, the jury said, or incompetent. He simply caved to his famous patient's demands,” the insider continued.

"He shouldn't be in prison; he should have been dealt with by the medical board and civilly.”

Apparently the Jackson family were pretty sure they would win the case and receive their pay-out.

However, they will allegedly avoid a huge legal bill, as they apparently established a "pay if we win" case.

“They felt that that sentiment would be on their side. They will now say that they just wanted to find the truth, well, the truth that was revealed was that Michael was indeed an addict and because he didn’t get help, he met the fate that he had set out for himself,” the source explained.

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