KUALA LUMPUR: Heavy machinery company Favelle Favco Bhd
and its wholly owned subsidiary, Favelle Favco Cranes (USA) Inc (FFC USA), have been named in a lawsuit seeking US$52.5 million (US$1=RM4.08) in damages over a crane incident in New York in July 2023.
In a filing with Bursa Malaysia today, Favelle Favco said FFC USA was served with a summons on July 23, 2026, in connection with the lawsuit filed by Employers Insurance Company of Wausau in the Supreme Court of the State of New York.
Favelle Favco said the action names the company, FFC USA and 13 other defendants, with the plaintiff seeking US$52.5 million in damages, together with statutory interest, costs and disbursements.
"The company understands that FFC USA's involvement was limited to the supply of the crane. Neither Favelle Favco nor FFC USA owned, operated or maintained the crane at the time of the incident,” the company said.
Favelle Favco also noted that the official independent investigation report did not attribute the incident to any failure by the manufacturer.
"Accordingly, the company believes that it has strong grounds to defend the claims,” it said.
Favelle Favco further said it has notified its insurer of the claim and will take all necessary steps to defend the legal proceedings.
"Based on the information presently available, the company does not currently expect the proceedings to have any material financial or operational impact on the group.
"However, at this preliminary stage of the proceedings, the company is unable to reliably estimate the potential financial exposure, if any, arising from the claim,” it said. - Bernama
