UPS Sued In NY For Shipping Untaxed Cigarettes | Fox Business

The New York State Office of the Attorney General said Wednesday that it filed a lawsuit analyst United Parcel Service for the shipment of over 136 million illegal, or untaxed cigarettes -- nearly 700,000 cartons -- across the state. The suit alleges UPS made nearly 80,000 separate illegal shipments during a four-year period. "Our lawsuit alleges that UPS blatantly disregarded New York and federal tax and public health laws, by shipping tens of millions of cheap, untaxed cigarettes to New Yorkers," said Attorney General Schneiderman. New York City Corporation Counsel Zachary Carter joined the AG in the "multimillion-dollar" suit. "Today's action is intended to take the profit out of this enterprise for UPS and to seek penalties sufficient to discourage other common carriers from facilitating the illegal sale and delivery of untaxed cigarettes," said NYC Corporation Counsel Carter. UPS's stock slipped 0.1% in midday trade. It has lost 3.4% over the past three months, while the S&P 500 has gained 2.2%.