Jackson was accused of child sexual abuse by a 13-year-old child named Jordan Chandler and his father Evan Chandler.[83] The friendship between Jackson and Evan Chandler broke down. Sometime afterwards, Evan Chandler was tape-recorded saying amongst other things, "If I go through with this, I win big-time. There's no way I lose. I will get everything I want and they will be destroyed forever...Michael's career will be over".[84] A year after they had met, under the influence of sodium amytal, a controversial sedative, Jordan Chandler told his father that Jackson had touched his penis.[85] Evan Chandler and Jackson, represented by their legal teams, then engaged in unsuccessful negotiations to resolve the issue in a financial settlement; the negotiations were initiated by Chandler but Jackson did make several counter offers. Jordan Chandler then told a psychiatrist and later police that he and Jackson had engaged in acts of kissing, masturbation and oral sex, as well as giving a detailed description of what he alleged were the singer's genitals.[86]
An official investigation began, with Jordan Chandler's mother adamant that there was no wrongdoing on Jackson's part. Neverland Ranch was searched; multiple children and family members denied that he was a pedophile.[86] Jackson's image took a further turn for the worse when his older sister La Toya Jackson accused him of being a pedophile, a statement she later retracted.[87] Jackson agreed to a 25-minute strip search, conducted at his ranch. The search was required to see if a description provided by Jordan Chandler was accurate. Doctors concluded that there were some strong similarities, but it was not a definitive match.[87] Jackson made an emotional public statement on the events; he proclaimed his innocence, criticized what he perceived as biased media coverage and told of his strip search.[83]
Jackson began taking painkillers, Valium, Xanax and Ativan to deal with the stress of the allegations made against him. By the fall of 1993, Jackson was addicted to the drugs.[88] His health deteriorated to the extent that he canceled the remainder of the Dangerous World Tour and went into drug rehabilitation for a few months.[89] The stress of the allegations also caused Jackson to stop eating, and he lost a significant amount of weight.[90] With his health in decline, Jackson's friends and legal advisers took over his defense and finances; they called on him to settle the allegations out of court, believing that he could not endure a lengthy trial.[89][90]
Tabloid reaction to the allegations put Jackson in an unfavorable light.[91] Complaints about the coverage and media included everything from bias against Jackson, accepting stories of alleged criminal activity for money to accepting confidential leaked material from the police investigation in return for money paid.[92] On January 1, 1994, Jackson settled with the Chandler family and their legal team out of court, in a civil lawsuit for $22 million. After the settlement Jordan Chandler refused to continue with police regarding criminal proceedings. Jackson was never charged, and the state closed its criminal investigation, citing lack of evidence