READERS' CHOICE

Time to vote! Click on any ad to access categories and vote for your favorite businesses to be the Readers' Choice selections.

Calendar
June 2012
S M T W T F S
27 28 29 30 31 01 02

Click here to submit an event.

N.Y. sues FedEx over cigarettes

BY LARRY NEUMEISTER Associated Press

NEW YORK - FedEx has cost New York state more than $10 million by unlawfully shipping contraband cigarettes to consumers, the state's attorney general said Monday as his office joined a lawsuit brought against the company last year by New York City officials. Attorney General Eric T. Schneiderman said he is seeking $165 million in penalties beyond the $70 million sought in the lawsuit and the recovery of $10 million that the shipments cost the state's tax revenues.

FedEx Corp., based in Memphis, Tenn., as accused in the lawsuit in federal court in Manhattan of making nearly 33,000 illegal shipments of cigarettes to New York consumers between 2006 and 2012, which would violate a 2006 deal the state struck with FedEx that included a promise by the company that it would no longer make illegal cigarette deliveries.

"FedEx's blatant disregard for its long-standing agreement with New York, as well as federal and state law, enabled tens of millions of cheap, untaxed cigarettes to be shipped to New Yorkers," Schneiderman said. "Not only has FedEx cheated the state out of millions in tax dollars, but many of these cigarettes may have ended up in the hands of teenagers, who are particularly vulnerable to low-priced cigarettes."

In a statement, FedEx said the claims by the city and state "lack legal foundation." It noted that no shippers or recipients of cigarettes were being sued.

"Instead, the city and state have chosen to target us for our role as a carrier," FedEx said. "While we work closely with all legal and regulatory authorities to ensure our networks are not inappropriately used for the shipment of prohibited items, we must also protect the privacy of our customers and will not open packages to determine their contents without reason." The company added that it fully supports New York's efforts.

"We intend to continue working with the city, state and all applicable regulatory agencies while vigorously defending this case," FedEx said.

Comments made about this article - 0 Total

Comment on this article

Your comment has been submitted for approval
captcha d87de73cdc4b43e79c37b36e8f3abc17
Top Classifieds
  • Bedroom Suites New in Boxes. 6pc. sle ... Details
  • PILLOW TOPmattress sets NEW in pl ... Details
  • SAWMILLS from only $4397 - MAKE & ... Details
  • 8 ft. Wheel Disk 270-851-7882 or 270 ... Details
  • Details
  • Beautifully updated 2bdr, 1.5ba condo ... Details
  • FAIRHURST BUILDING Professional Offic ... Details
  • SEEING is believing! Don't buy p ... Details
  • 3 bdrm. 3 bath, 2450 sq. ft. in Weste ... Details
  • 2010 Mercury Mariner SUV, 4 cyl., Pre ... Details

Most Popular
  1. Little demand, big deals
  2. Don and Bettie Edwards
  3. When school's out, campuses play host to summer programs
  1. Calloway's Woods wins state wrestling title
  2. Study: Surgeons rude to patients may pose problem in OR
  3. Paducah police promotions
  1. Little demand, big deals
  2. When school's out, campuses play host to summer programs
  3. LBL Advisory Board meeting set March 2
Discussion

Check out these recently discussed stories and voice your opinion...