Superior Court Judge Yvette Palazuelos issued the court ruling Monday afternoon, saying jurors were given proper instructions and there were no errors in her trial rulings that would warrant a retrial.
In October, a jury found that AEG was not liable for the singer's June 2009 death despite hiring Conrad Murray, the doctor who was convicted of giving the superstar an overdose of the anesthetic propofol.
But Katherine Jackson's attorneys argued that there were flaws in the jury instructions that could have had an impact on the verdict.
Lawyers for AEG said they are pleased with the judge's decision. The Jackson attorneys say they will now proceed to a higher court in appealing the verdict.
The Associated Press contributed to this report.