New York seeks $872 million from UPS in cigarette shipments trial

business law, company law, Taxes by Leave a comment

United Parcel Service air craft are being loaded with air containers full of packages bound for their final destination at the UPS Worldport All Points International Hub during the peak delivery month in Louisville, Kentucky December 3, 2015. REUTERS/John Sommers II

New York state and city authorities took United Parcel Service Inc (UPS.N) to trial on Monday, urging a federal judge to make the company pay more than $872 million for making illegal deliveries of more than 683,000 cartons of untaxed cigarettes.

The non-jury trial before a federal judge in Manhattan came in a lawsuit by New York Attorney General Eric Schneiderman and New York City as part of the state’s ongoing efforts to combat smuggling of cigarettes from lower-tax areas.

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