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New York state joins NYC in suing FedEx

Staff writer |
New York state joined New York City in suing FedEx for allegedly violating state and federal laws by illegally delivering contraband cigarettes to people's homes.

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The City of New York had sued FedEx, accusing the company of creating a "public nuisance" through its partnership with Shinnecock Smoke Shop to ship untaxed cigarettes to homes. An amended complaint filed included the State of New York Attorney General Eric Schneiderman among the plaintiffs, and sought more than $239 million in damages and penalties.

The New York state alleged that FedEx knowingly shipped nearly 400,000 cartons of unstamped cigarettes to homes in the state, depriving it of $15, $27.50 or $43.50 on each carton in tax revenue. The New York city had earlier alleged that the company deprived it of excise tax of $15 per carton.

FedEx requested the court last week to dismiss or substantially narrow New York City's complaint.

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