UPS deprived New York of millions of dollars in revenue by shipping nearly 700,000 cartons of untaxed cigarettes from Indian reservations to smokers statewide, despite an earlier agreement to stop, according to a federal lawsuit filed Wednesday. Attorney General Eric Schneiderman and New York City Corporation Counsel Zachary Carter are seeking $180 million from Atlanta-based UPS, saying the cheap cigarettes increased smoking by New Yorkers while also costing $29.7 million in lost excise tax revenue from the state and $4.7 million from the city.
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