You are here: Home » Reuters » News
Business Standard

FedEx pays $35.3 million to end NY lawsuit over illegal cigarettes

Reuters  |  NEW YORK 

NEW YORK (Reuters) - Corp will pay $35.3 million to settle lawsuits in which New York state and accused the company of shipping millions of untaxed cigarettes to residents over a decade.

The settlement announced on Monday resolves claims that knowingly violated a federal anti-cigarette trafficking statute, and a 2006 agreement with the state not to do with sellers that ship cigarettes to people's homes.

New York officials said FedEx's conduct undercut their efforts to curb smoking, and cheated the state and city out of tax revenue from cigarette sales.

"Not only did violate laws created to protect the public from the serious health risks associated with cigarettes, but they also swindled and State out of millions of dollars in tax revenue," General said in a statement.

Zachary Carter, New York City's corporation counsel, accused FedEx of shipping cigarettes "for the worst of reasons -profit."

FedEx did not immediately respond to a request for comment.

The settlement also requires FedEx to stop domestic shipments of cigarettes with "limited" exceptions, punish workers who knowingly arrange such shipments, and hire an to monitor its compliance.

(Reporting by in New York; Editing by James Dalgleish)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Mon, January 14 2019. 22:19 IST