FedEx Ground Package System Inc. agreed to pay $35 million to resolve a lawsuit over illegal cigarette deliveries to residents in New York, three months after a judge said the company appeared to have knowingly violated a federal trafficking law.
The settlement resolves allegations in three lawsuits that the company, a unit of FedEx Corp., partnered with cigarette trafficking businesses, including “Cigarettes Direct To You,” to illegally ship hundreds of thousands of untaxed cigarettes, New York Attorney General Letitia James said Jan. 14 in a statement.
The state says cigarette taxes are the most effective means of deterring smoking.
“Not ...
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