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New York Puts UPS's Culture On Trial In $873M Cigarette Case

WAMC Northeast Public Radio | By Dave Lucas
Published November 1, 2016 at 4:39 PM EDT
Wikipedia

New York regulators say the country's largest package delivery company turned a blind eye for years to the prohibited shipment of untaxed cigarettes.

A federal judge on Wednesday will hear closing arguments in the city and state's $873 million lawsuit against Atlanta-based UPS. At issue is the lucrative home delivery business for counterfeit cigarettes from shippers on Native American reservations.

In 2005, United Parcel Service Inc. agreed to look more carefully for signs its customers dealt in contraband cigarettes. A 2010 federal law added compliance requirements.

But city and state lawyers say UPS hasn't taken compliance seriously.

UPS says it follows its own rules and all applicable laws. It says it isn't responsible if some low-level employees acted unscrupulously.

© 2016 AP
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New York News native americanCigarette TaxUPS
Dave Lucas
Dave Lucas is WAMC’s Capital Region Bureau Chief. Born and raised in Albany, he’s been involved in nearly every aspect of local radio since 1981. Before joining WAMC, Dave was a reporter and anchor at WGY in Schenectady. Prior to that he hosted talk shows on WYJB and WROW, including the 1999 series of overnight radio broadcasts tracking the JonBenet Ramsey murder case with a cast of callers and characters from all over the world via the internet. In 2012, Dave received a Communicator Award of Distinction for his WAMC news story "Fail: The NYS Flood Panel," which explores whether the damage from Hurricane Irene and Tropical Storm Lee could have been prevented or at least curbed. Dave began his radio career as a “morning personality” at WABY in Albany.
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