New York AG hits FedEx with $235 million suit over untaxed cigarettes

Eric Schneiderman said the company ignored a 2006 agreement signed with the state

Relax, it’s FedEx. But that slogan doesn’t work as well for the company’s legal team, who is now fighting a $235 million lawsuit from New York Attorney General Eric Schneider­man over untaxed cigarette shipments.

In a lawsuit filed on March 30, Schneiderman’s office claims that FedEx violated state and federal law by delivering over 400,000 cartons of cheap and untaxed cigarettes across the state to consumers. According to the lawsuit, this practice directly contradicts a 2006 agreement FedEx signed with the state to attempt to stop the practice.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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