Judge: UPS Must Pay $247M to NYC and State in Cigarette Case

NEW YORK (AP) — A federal judge on Thursday ordered delivery giant UPS Inc. to pay New York City and the state nearly $247 million in damages and penalties for illegally shipping cigarettes.

U.S. District Judge Katherine Forrest handed down the penalty after finding the company liable in a civil case in federal court in Manhattan in March, saying the company ignored "red flags" that its brown trucks were being used to transport untaxed cigarettes from Indian reservations,

New York state and New York City sued Atlanta-based UPS in 2015. The lawsuit accused it of having a corporate culture that favored sales opportunities over a responsibility to following regulations helping New York enforce tax law.

"We are pleased that the award of nearly $247 million to the city and state reflects the serious nature of the offenses at issue," the city's chief lawyer, Zachary Carter said. "Cigarette smoking is a leading cause of preventable death and the city and the state will continue in their efforts to protect the public health."

Read more: https://www.usnews.com/news/business/articles/2017-05-25/judge-ups-must-pay-247m-to-nyc-and-state-in-cigarette-case