New York State Attorney General Sues Fedex
The State Attorney General’s office has filed a $70 million lawsuit against Federal Express, claiming the corporation unlawfully shipped nearly 80 million cigarettes to consumers across New York state in violation of federal and state laws.
The suit alleges that between 2006 and 2012, Fedex made nearly 33 thousand shipments of cigarettes to consumers in New York state, amounting to over 400,000 cartons of untaxed cigarettes and a direct tax loss to the state of over $10 million. Each shipment carries a maximum penalty of $5,000.
The Attorney General says the shipments were in clear violation of a 2006 agreement in which Fedex agreed to cease untaxed cigarette deliveries to consumers both in New York and throughout the country.