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., is 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.
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., is 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.