UPS Fined For Shipping Illegal Smokes

(RTTNews) - A federal judge has ordered delivery giant UPS Inc. to pay New York City and the state nearly $247 million for illegally transporting untaxed cigarettes through out the New York.

U.S. District Judge Katherine Forrest said that the company ignored "red flags" and continued to transport untaxed cigarettes. The Judge said the court was convinced "modest penalties" will not make a "sufficient corporate impact" on UPS.

UPS will have to pay New York state $165.8 million and New York City $81.2 million.

The state Attorney General and city Law Department had filed the lawsuit against UPS in February 2015. The suit claimed that the 78,500 cigarette shipments deprived the city and state $35 million in tax money.

UPS said it was disappointed with the court's ruling and the company would appeal against 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," UPS said in an emailed statement.