NYC sues FedEx for illegally shipping cigarettes to homes
NEW YORK (REUTERS) - New York City has sued FedEx Corp, accusing it of illegally delivering millions of contraband cigarettes to people's homes and seeking US$52 million (S$65.9 million) in fines and unpaid taxes.
The lawsuit, filed in United States (US) District Court in Manhattan, marks one of the last acts by the administration of Mayor Michael Bloomberg, whose more than decade-old campaign to ban smoking in various public and private places has been credited with saving thousands of lives and become a blueprint for other cities.
According to the city, package delivery company FedEx created a "public nuisance" through its partnership with Shinnecock Smoke Shop, located on the Shinnecock Indian Nation reservation in Southampton, New York, to ship untaxed cigarettes to residential homes.
FedEx allegedly did so despite, and even while negotiating, a February 2006 agreement with New York State's then attorney general, Mr Eliot Spitzer, to stop such deliveries in the state, an agreement later expanded to cover deliveries throughout the country.