September 27, 2018 / 1:02 AM / 2 years ago

U.S. court dismisses NY lawsuit against FedEx over cigarettes

Sept 26 (Reuters) - A federal judge in New York dismissed a lawsuit on Wednesday against FedEx Corp in which New York state and New York City claimed that the package delivery company had shipped untaxed cigarettes, cheating both out of tax revenue, according to a court document.

The lawsuit, which was filed against FedEx Ground Package System Inc and FedEx Freight Inc, had sought penalties under the Contraband Cigarette Trafficking Act, which prohibits shipping contraband cigarettes.

In his ruling, Judge Edgardo Ramos noted that the complaint simply alleged that, sometime within a 10-year span, FedEx made shipments totaling over 10,000 cigarettes. "Without further details, there is insufficient factual content to 'draw the reasonable inference that the defendant is liable for the misconduct alleged.'"

Ramos said the plaintiffs could appeal and re-file their complaint by Oct. 31.

FedEx could not be reached immediately for comment.

Reporting by Aakash Jagadeesh Babu and Ishita Chigilli Palli in Bengaluru Editing by Leslie Adler

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