News Content
UPS to appeal US$247m fine for shipping counterfeit cigarettes in New York
A US federal judge has ordered United Parcel Service to pay US$247 million in damages and penalties for "illegally shipping" large volumes of untaxed cigarettes in New York. UPS said that it will appeal the ruling.
UPS was accused of shipping 683,000 cartons of untaxed "contraband" cigarettes since 2010 to unlicensed wholesalers, unlicensed retailers and residences, often from smoke shops on Indian reservations.
"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 was cited as saying in an emailed statement, reported NBC News (Reuters).
The ruling by District Judge Katherine Forrest of Manhattan justified the amount saying the court was convinced "modest penalties" will not make a "sufficient corporate impact" on UPS.
The parties had to file certain required information to the court before April 7 in which UPS' court submissions showed a "lack of cooperation" and "odd abrasiveness," according to the court ruling. The court was said in the ruling to be "troubled" by UPS' "consistent unwillingness to acknowledge its errors."
The federal judge in March held UPS liable for having illegally shipped hundreds of thousands of cartons of untaxed cigarettes in New York, depriving the state and New York City of millions of dollars of taxes. The state and New York city had sought $872 million.
UPS was accused of shipping 683,000 cartons of untaxed "contraband" cigarettes since 2010 to unlicensed wholesalers, unlicensed retailers and residences, often from smoke shops on Indian reservations.
"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 was cited as saying in an emailed statement, reported NBC News (Reuters).
The ruling by District Judge Katherine Forrest of Manhattan justified the amount saying the court was convinced "modest penalties" will not make a "sufficient corporate impact" on UPS.
The parties had to file certain required information to the court before April 7 in which UPS' court submissions showed a "lack of cooperation" and "odd abrasiveness," according to the court ruling. The court was said in the ruling to be "troubled" by UPS' "consistent unwillingness to acknowledge its errors."
The federal judge in March held UPS liable for having illegally shipped hundreds of thousands of cartons of untaxed cigarettes in New York, depriving the state and New York City of millions of dollars of taxes. The state and New York city had sought $872 million.
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