FedEx Agrees to Payout, Ceasing Tobacco Shipments in Settlement with New York - Articles

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Posted by: Katharine Heriges on Jan 14, 2019
FedEx has reached a $35.4 million settlement with the city and state of New York for three lawsuits alleging illegal shipments of cigarettes in the state over a 10-year period, The Commercial Appeal reports. In announcing the case against FedEx in 2014, the New York Attorney General’s office said FedEx made close to 33,000 illegal cigarette shipments amounting to more than 400,000 untaxed cigarette cartons to consumers in the state. This meant New York lost out on more than $10 million in tax dollars. In its settlement, FedEx, beyond the payment, agreed to reforms like ceasing domestic tobacco shipments (with limited exceptions) and having an independent consultant monitor the company’s compliance going forward.