N.Y. Suit Against Internet Cigarette Sellers Dismissed, but City Can Refile

New York City's novel pursuit of tax revenue lost to direct sales of cigarettes over the Internet was dismissed Thursday by Southern District Judge Deborah Batts.

But Corporation Counsel Michael A. Cardozo and attorneys with the Law Department say they are confident that Batts' decision allowing them to refile its complaint against 16 Internet cigarette dealers under the Racketeer Influenced and Corrupt Organizations Act will allow them to prevail eventually.

City v. Cyco.net, 03 Civ 383, attempted to break new ground by claiming that the dealers' failure to file so-called Jenkins Act reports with New York state on the volume of cigarette sales in New York constitute the predicate acts of mail and wire fraud needed to make a case, and win treble damages, under RICO.

Details here from the New York Law Journal via Law.com.