FedEx pays $35.3 million to end NY lawsuit over illegal cigarettes

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FedEx pays $35.3 million to end NY lawsuit over illegal cigarettes

FILE PHOTO: A FedEx Office logo is pictured in Times Square in the Manhattan borough of New York, New York, U.S. April 2, 2017. REUTERS/Carlo Allegri

NEW YORK (Reuters) – FedEx Corp (FDX.N) agreed on Monday to pay $35.3 million to settle lawsuits in which New York state and New York City accused the company of shipping hundreds of thousands of untaxed cigarettes to residents over a decade.

The settlement resolves claims that FedEx knowingly violated a federal anti-cigarette trafficking statute, and a 2006 agreement with the state not to do business with sellers that ship cigarettes to people’s homes.

Reporting by Jonathan Stempel in New York; Editing by James Dalgleish