FedEx unit to pay $35.3 million to New York State to settle cigarette-trafficking charges - FreightWaves
The ground delivery unit of FedEx Corp. will pay the state of New York $35.3 million to settle three lawsuits alleging that FedEx partnered with cigarette trafficking companies to ship hundreds of thousands of untaxed cigarettes to New York residents, the state announced today
The state charged that the FedEx unit, FedEx Ground, violated federal anti-cigarette trafficking laws as well as assurances made nearly 13 years ago that it would cease residential cigarette deliveries and comply with the laws barring them. According to FedEx Ground, the state and New York City, the plaintiffs in the case, had originally sought nearly $700 million.
The ground delivery unit of FedEx Corp. will pay the state of New York $35.3 million to settle three lawsuits alleging that FedEx partnered with cigarette trafficking companies to ship hundreds of thousands of untaxed cigarettes to New York residents, the state announced today
The state charged that the FedEx unit, FedEx Ground, violated federal anti-cigarette trafficking laws as well as assurances made nearly 13 years ago that it would cease residential cigarette deliveries and comply with the laws barring them. According to FedEx Ground, the state and New York City, the plaintiffs in the case, had originally sought nearly $700 million.
