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UPS Must Pay $247 Million to N.Y. Over Untaxed Cigarettes

UPS Inc. must pay $247 million to the state and city of New York for what a judge called the company’s "egregious and prolonged" failure to stop shipments of untaxed cigarettes from American Indian reservations that undermined anti-smoking efforts. U.S. District Judge Katherine Forrest in Manhattan said she wanted to send a message to the most senior executives at UPS about the cost of such misconduct. Modest penalties, she said in her ruling May 25, “would not make a sufficient corporate impact” on the company.

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