New York sues FedEx for delivering cigarettes from Indian firms

Tuesday, April 1, 2014  

New York Attorney General Eric Schneiderman filed suit against FedEx, accusing the shipping giant of violating state and federal law by delivering cigarettes from smoke shops in Indian Country.

Schneiderman claims FedEx owes $70 million for shipping 80 million contraband cigarettes to consumers in the state. He said the tobacco came from four businesses -- including Native Made Tobacco, based on the Agua Caliente Reservation in California, and Shinnecock Smoke Shop, based on the Shinnecock Nation in New York.

"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,” Schneiderman said in a press release.

The complaint accuses FedEx of violating the federal Contraband Cigarette Trafficking Act and the Prevent All Cigarette Trafficking Act, in addition to state laws.

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