A federal judge found UPS liable for delivering untaxed cigarettes but did not impose a USD 873 million (EUR 808 million) penalty sought by regulators, the Associated Press said.
New York and New York City brought suit in 2015, accusing the delivery company of rating profit above its obligation to help New York officials enforced tax law. US District Judge Katherine Forrest in New York City said UPS ignored signals that the cigarettes delivered to customers from Indian reservations were illicit, the AP said.
New York Attorney General Eric Schneiderman declared the decision a “win for New York and an win for public health.” UPS repeatedly violated state and federal contraband cigarette trafficking laws in shipping thousands of cartons to New York consumers, the AG’s office said in a statement.