The city and state of New York has accused Federal Express Corp. (FedEx) of illegally shipping untaxed cigarettes from Native American reservations. On July 7, 2016, Krista Friedrich, an attorney for the city and state governments, has filed a letter in court accusing FedEx of refusing to turn over documents -- nationwide shipping records that would allegedly support the governments’ claims. FedEx argues that the claim is unsubstantiated.
In March 2014, New York Attorney General Eric Schneiderman filed a $235 million lawsuit against FedEx accusing the company of “engaging in a pattern of racketeering activity with various cigarette retailers.” Schneiderman said: "Not only has FedEx cheated the state out of millions in tax dollars, but many of these cigarettes may have ended up in the hands of teenagers, who are particularly vulnerable to low-priced cigarettes." In September 2015, FedEx announced that as of January 1, 2016, the courier would no longer ship tobacco products.
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