FedEx Corp will be required to pay USD 35.4 million after reaching a settlement in three lawsuits in which the company was accused of knowingly shipping millions of untaxed cigarettes to residents in New York over a decade, Reuters reported.

The settlement was made after U.S. District Judge, Edgardo Ramos, reached the verdict that FedEx “had knowingly violated a federal anti-cigarette trafficking statute, and a 2006 agreement with the state not to ship cigarettes to people’s homes” on 15 October 2018, Reuters reported.
New York officials said that the Tennessee-based shipping company shipped the illegal cigarettes on behalf of different companies including Cigarettes Direct To You and Shinnecock Smoke Shop.
FedEx did not confess to or refute the allegation that it was involved in illegal activity, according to report. With the ruling the company will no longer be able to ship cigarettes domestically and it will be required to penalise employees who deliberately send cigarettes. In addition to that, FedEx will be monitored by an independent authority to make sure it complies with the stipulations of the agreement, according to the report.
In a statement, Letitia James, attorney general, commented on the lawsuit saying, “Not only did FedEx violate laws created to protect the public from the serious health risks associated with cigarettes, but they also swindled New York City and State out of millions of dollars in tax revenue.”
Cigarette prices in New York are among the highest in the US.