TELETRADER News
1/14, 5:44 PM (Source: TeleTrader)
more TeleTrader news

Fedex-1.59%

176.17
Chart for: FedEx Corporation

FedEx to pay $35.3M to settle cigarette shipping claims

FedEx Corp. will pay $35.3 million to both New York City and the New York state to settle allegations that it knowingly breached regulations against delivering cigarettes to homes. The delivery service company was also accused of shipping untaxed cigarettes.

"Not only did FedEx violate laws created to protect the public from the serious health risks associated with cigarettes, but they also swindled New York City and state out of millions of dollars in tax revenue," the Attorney General of New York state Letitia James said earlier. According to the settlement, FedEx will have to hire a consultant who will oversee if it is complying with legislation, submit compliance reports and conduct reforms within the company. FedEx shares were 0.56% in the green at 11:37 am ET.

New York City has among the highest cigarette taxes in the whole of United States, with the minimum price for a pack set at 13$ last year.

Breaking the News / NI