AIG Client Sues Northrop Grumman Over Fatal 2005 Seaplane Crash

January 13, 2009

The maker of a vintage seaplane that crashed off Miami Beach in 2005, killing 20 people, is being sued in federal court.

Federal investigators blamed faulty repair and inadequate government regulation for the crash of the 58-year-old Chalk’s Ocean Airways seaplane.

But new lawsuits filed in Miami and New York claim aircraft maker Northrop Grumman Corp. is to blame because the seaplane was defective and dangerous.

The lawsuits were filed by Chalk’s, which has ceased operations, and its insurance company AIG. AIG has paid $50 million to crash victim families, many of whom were from Bimini, Bahamas. The lawsuits seek unspecified damages.

The seaplane crashed after its right wing sheared off. Northrop Grumman declined comment on the lawsuit.

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