March 31 New York state joined New York City in
suing package delivery company FedEx Corp for allegedly
violating state and federal laws by illegally delivering
contraband cigarettes to people's homes.
The City of New York had sued FedEx last December, accusing
the company of creating a "public nuisance" through its
partnership with Shinnecock Smoke Shop to ship untaxed
cigarettes to homes.
An amended complaint filed on Sunday included the State of
New York Attorney General Eric Schneiderman among the
plaintiffs, and sought more than $239 million in damages and
The New York state alleged that FedEx knowingly shipped
nearly 400,000 cartons of unstamped cigarettes to homes in the
state, depriving it of $15, $27.50 or $43.50 on each carton in
The New York city had earlier alleged that the company
deprived it of excise tax of $15 per carton.
"The claims advanced in the Amended Complaint by the NYAG
are substantively identical to the City's claims in the original
Complaint," Assistant Corporation Counsel Eric Proshansky, who
represents the New York City in the case, said in a letter on
"Accordingly, the proposed objections to the pleadings
raised by FXG (FedEx Ground Package) should still form the basis
for discussion at the April 9th pre-motion conference."
FedEx requested the court last week to dismiss or
substantially narrow New York City's complaint.
Schneiderman's office and FedEx were not immediately
available for comment outside regular business hours.
The case is City of New York v. FedEx Ground Package System
Inc et al, U.S. District Court, Southern District of New York,
(Reporting by Supriya Kurane in Bangalore; Editing by Joyjeet