KUALA LUMPUR (June 29): Favelle Favco Bhd (KL:FAVCO) said on Monday that its wholly-owned US subsidiary is being sued for US$25 million (RM101.78 million) in New York by an individual over a crane incident.

The lawsuit against Favelle Favco Cranes Inc (FFC USA) was filed in the Supreme Court of the State of New York on June 24, said Favelle Favco in a filing with Bursa Malaysia.

The individual, Justin Santiago, is suing FFC USA for alleged injuries, harm and losses from the crane incident that occurred in July 2023.

In the incident, an FFC USA-manufactured diesel-powered crane caught fire and partially collapsed during a construction operation in Manhatten, New York. According to news reports, nearby buildings were damaged but there were no life-threatening injuries.

Favelle Favco said in Monday's filing that FFC USA’s involvement was limited to the supply of the crane involved in the incident and that neither Favelle Favco nor FFC USA owned, operated or maintained the crane at the time of the incident.

It added that an official independent investigation report did not attribute the incident to the manufacturer.

"The company has notified its insurer of the claim and will take all necessary steps to vigorously defend the proceedings," said Favelle Favco said.

Favelle Favco's share price closed four sen or 2.4% lower at RM1.63, giving the company a market capitalisation of RM387.14 million.