KUALA LUMPUR (July 28): Favelle Favco Bhd (KL:FAVCO) said its wholly owned US subsidiary, Favelle Favco Cranes (USA) Inc, has been named as one of 15 defendants in a lawsuit filed in New York seeking US$52.5 million (RM214.8 million) in damages over a crane incident which made headlines in July 2023.

In a Bursa Malaysia filing on Tuesday, the crane manufacturer said FFC USA was served with a summons on July 23 in an action brought by insurance company Employers Insurance Company of Wausau after compensating 555 Tenth Avenue Leasehold Condominium for losses related to the incident.

The claim relates to losses from a crane collapse in Midtown Manhattan on July 26, 2023, when the boom of a 45-storey crane carrying 16 tonnes of concrete fell onto a nearby building before crashing onto the street. 

The company said FFC USA's role was limited to supplying the crane and that neither Favco nor its US unit owned, operated or maintained the crane at the time of the incident.

It added that an official independent investigation did not attribute the incident to any manufacturing defect, and believes it has strong grounds to defend the claims.

Favelle Favco said it has notified its insurer and will take all necessary steps to vigorously defend the proceedings.

Its shares were down slightly on Tuesday to RM1.73 a share, valuing the company at RM411.3 million.