Judge Orders UPS to Pay $247 Million for Illegally Shipping Cigarettes

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A federal judge found UPS liable for illegally shipping cigarettes in fresh York State, which cost the state in addition to fresh York City millions in taxes.

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Ruth Fremson/The fresh York Times

UPS must pay $247 million in damages in addition to penalties to fresh York City in addition to fresh York State for illegally shipping cigarettes, a federal judge ordered Thursday.

“A very significant award” was necessary because of the public health hazard posed by cigarettes in addition to as a deterrent to future bad conduct, said Judge Katherine B. Forrest of Federal District Court in Manhattan. In her opinion, Judge Forrest wrote that will the penalty needed to be substantial enough to send a message to UPS executives.

“The court can be convinced that will modest penalties would likely not make a sufficient corporate impact on UPS as a whole,” she wrote.

In March, Judge Forrest found UPS liable for illegally shipping hundreds of thousands of cartons of untaxed cigarettes among Indian reservations, unlicensed dealers in addition to individual consumers. The shipments cost the city in addition to state millions in tax dollars in addition to violated a 2005 agreement between the state in addition to UPS not to ship cigarettes to unlicensed recipients.

Judge Forrest chided UPS in March for having a corporate culture that will promoted sales over compliance. On Thursday, she again criticized UPS’s culture, saying that will company officials had shown a “lack of acceptance of responsibility for their actions at issue in This particular case.”

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Judge Orders UPS to Pay $247 Million for Illegally Shipping Cigarettes

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