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AG sues FedEx over cigarettes

NEW YORK (AP) — The New York state attorney general said FedEx Corp. has cost the state more than $10 million by unlawfully shipping contraband cigarettes to consumers.

Attorney General Eric T. Schneiderman made the allegation Monday. He announced the state has joined a federal lawsuit that New York City officials brought against the high-speed mail carrier in December.

The revised lawsuit in Manhattan federal court alleges FedEx made nearly 33,000 illegal shipments of cigarettes to consumers in New York state between 2006 and 2012.

Schneiderman alleged the deliveries violate a 2006 agreement with the New York attorney general’s office in which the company said it would cease all unlawful cigarette deliveries nationwide.

The Memphis, Tenn.-based FedEx said the claims lack legal foundation and it supports efforts to stop illegal cigarette distribution.