NYC sues FedEx for illegally delivering cigarettes
(WMC-TV) - New York City is suing Memphis-based FedEx.
The shipping giant is accused of illegally delivering millions of contraband cigarettes to people's homes, which violates a 2006 settlement. The city is seeking $52 million in civil fines and unpaid taxes.
FedEx issued the following statement:
Through its contracts with customers, FedEx prohibits the
shipment of tobacco direct to consumers and believes the claims made by the
city are overstated and not founded in law.
We fully support New York City's efforts to stop the
shipment of untaxed cigarettes. We have ceased doing business with shippers
identified as violating this provision and notified the state of New York.
To protect the privacy of our customers, FedEx will not
open packages to determine their contents without reason. Therefore, to best
support the city's efforts, we intend to continue working closely with the
city, state and all applicable regulatory agencies. We have and will continue
to stop doing business with shippers identified as shipping prohibited tobacco
FedEx intends to defend this case while continuing to
work with authorities to stop prohibited tobacco shipments.