The city of New York is suing a tobacco company in Washington state, saying it illegally sells and distributes untaxed cigarettes in New York.

Filed on Tuesday in the U.S. District Court in the Eastern District of New York in New York City, the lawsuit seeks unspecified damages and penalties and asks the court to force King Mountain to comply with state cigarette tax laws. It alleges that King Mountain Tobacco Company made numerous shipments of unstamped cigarettes to New York state, a violation of three federal statutes.
King Mountain owners say they are not doing anything illegal, and that the city isn't recognizing their trading rights protected under their tribe's treaty with the federal government.
New York Mayor Michael Bloomberg said in a news release tax evasion by King Mountain hurts law-abiding small businesses and costs the state and the city millions of dollars in lost tax revenue. (pi)