US court dismisses NY lawsuit against FedEx

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FedEx has been cleared of a lawsuit by a federal judge in New York, in which  the package delivery company was accused of shipping untaxed cigarettes, cheating both out of tax revenue, according to a court document.

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The lawsuit against FedEx Ground Package System and FedEx Freight  had sought penalties under the Contraband Cigarette Trafficking Act, which prohibits shipping contraband cigarettes, according to Reuters.

Judge Edgardo Ramos noted the complaint simply alleged that, sometime within a 10-year span, FedEx made shipments totaling over 10,000 cigarettes. "Without further details, there is insufficient factual content to 'draw the reasonable inference that the defendant is liable for the misconduct alleged.'"

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Plaintiffs could appeal and re-file their complaint by Oct. 31.

"At FedEx Ground, we are committed to honoring the privacy of our customers, who trust us to transport their packages safely and securely. We take that trust very seriously and will continue to defend our position in the pending litigation," a FedEx spokeswoman told Reuters.