New York filed a USD 70 million (EUR 51 million) lawsuit against FedEx for continuing deliveries of millions of untaxed cigarettes to customers in violation of a promise made to the state, the attorney general's office said.

FedEx in 2006 agreed to stop the cigarette deliveries, however the practise continued, the AG's office said. The deliveries were not labelled as cigarettes nor did the shipper report the sales as required by federal law, the statement said. The state lawsuit increases the amount of damages initially sought by New York City in a civil suit filed in December.
New York is seeking redress for nearly 33,000 shipments delivered by FedEx from cigarette vendors in Kentucky, California and the Shinnecock Reservation on Long Island, New York. The deliveries were made between 2006 and 2012 and amount to 80 million cigarettes, the suit alleges. In addition to damages, the AG's office said it also is seeking USD 165 million in penalties.
“FedEx’s blatant disregard for its long-standing agreement with New York, as well as federal and state law, enabled tens of millions of cheap, untaxed cigarettes to be shipped to New Yorkers,” said state Attorney General Eric Schneiderman. “Not only has FedEx cheated the state out of millions in tax dollars — but many of these cigarettes may have ended up in the hands of teenagers, who are particularly vulnerable to low-priced cigarettes.”