New York City has sued FedEx Corp, accusing the package delivery company of illegally delivering millions of contraband cigarettes to people's homes, violating a 2006 settlement. Monday's lawsuit was filed in the U.S. District Court in Manhattan and seeks $52 million of civil fines and unpaid taxes from FedEx, which is based in Memphis, Tennessee. It marks one of the last acts by the administration of New York City Mayor Michael Bloomberg, whose more than decade-old campaign to ban smoking in various public and private places has been credited with saving thousands of lives and become a blueprint for other cities. According to the city, FedEx created a "public nuisance" through its partnership with Shinnecock Smoke Shop, located on the Shinnecock Indian Nation reservation in Southampton, New York, to ship untaxed cigarettes to residential homes.
via Business News - Yahoo Finance http://finance.yahoo.com/news/nyc-sues-fedex-illegally-shipping-210332776.html
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