USPS Must Face NYC’s Suit Over Contraband Cigarettes

(February 16, 2021, 9:11 PM EST) — A New York federal judge trimmed allegations Monday that the U.S. Postal Service cost New York City and four states millions of dollars in taxes by failing to properly police contraband cigarette shipments, but rejected USPS’ arguments it can’t be sued for violations of the Prevent All Cigarette Trafficking Act.

In a 21-page order, U.S. District Court Judge Brian M. Cogan said the states and city can proceed with claims brought under the PACT Act, finding that USPS is not immune because the text of the act “strongly suggests” that it can be held liable for violations.


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