In the final ruling in the case between the state of New York and UPS, a federal judge convicted the parcel carrier of transporting hundreds of thousands of cartons of untaxed cigarettes into the state from American Indian Reservations.
A federal judge has ordered United Parcel Service (UPS) to pay $247 million in damages and penalties on Thursday in a final ruling of a case that began in September 2016.
The state of New York initially filed suit against UPS for allegedly transporting large volumes of untaxed cigarettes into New York City and elsewhere in the state.
In regards to UPS, District Judge Katherine Forrest said the court was “troubled by the consistent unwillingness to acknowledge its errors” as the parcel giant repeatedly ignored signs that its shipments were contraband and, therefore, illegal.
Forrest in March held UPS liable for having illegally shipped hundreds of thousands of untaxed cigarettes from American Indian reservations into New York.
The final ruling handed down Thursday will award New York state $165.8 million and New York City $81.2 million.
In its statement on the final ruling, UPS said it is “extremely disappointed in the Court’s ruling and imposed penalties and we will vigorously appeal the decision. The Court’s monetary award is excessive and far out of the bounds of constitutional limits, particularly given that the shipments at issue generated around $1 million in revenue.”
Originally, the city and state sought more than $872 million in damages, but New York City Corporation Counsel Zachary Carter said the amount is “pleasing” and “reflects the serious nature of the offense.”
UPS fined $247m in N.Y. cigarette suit
