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NY AG files $70M lawsuit against FedEx

Albany, N.Y. -- New York State Attorney General Eric Schneiderman announced a $70 million lawsuit against FedEx for illegal shipping of untaxed cigarettes to consumers.

An investigation found that FedEx made nearly $33,000 of illegal shipments of cigarettes to customers since 2006.

The lawsuit said the shipments were in violation of an agreement FedEx made with the NYS Attorney General's Office in 2006. The lawsuit further alleged that FedEx engaged in racketeering with various cigarette retailers to traffic contraband cigarettes.

The lawsuit sought an additional $165 million in penalties.

Schneiderman said trafficking cigarettes damages our health and hurts our pocketbooks.

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