Here is what I know about it, having talked firsthand to some of the people directly and indirectly involved with that incident. I don't know ALL about it, and I was not there, so don't construe all this as pure fact:

It happened in 1977 at Shea Stadium. A 60 sized plane went into the stands and killed a girl. EVERYBODY got sued, including Kraft, the radio manufacturer. Who paid? I do not know. Cases like that, it ends up being up to the insurance companies to work it out amongst themselves, often has little to do with who is actually responsible...insurers often take a pragmatic approach and just settle, each one paying part, rather than spend years in court.
Anyway...this was a paid demo. The guy who set it up got some $3000 for each demo, and they had done maybe eight demos at various stadiums. The guy had vision problems, he was losing his sight, he had limited periphial vision, and that was why he lost control of the aircraft. Another pilot refused to fly at Shea Stadium...he came walking out to do the demo with his Aeromaster under one arm and his field box under the other, stood in the middle of the field, looked around, said "this is not safe" and walked back off the field.
When you think about it, the whole situation was so dumb, so incredibly unsafe...I mean, no matter what direction you crash in, there would be people there...that the end result was inevitable. Plenty of people told the guy behind this scheme, and the other guys who flew with him, that this was a bad idea...but they were getting paid, so they did it anyway.