The suit was filed Tuesday in federal court in Brooklyn.
It alleges that King Mountain Tobacco Company made numerous shipments of unstamped cigarettes to New York state, a violation of three federal statutes.
King Mountain is Indian-owned and is located on the Yakama reservation.
The company’s CEO Kamiakin Wheeler said in a statement the city brought the suit because Bloomberg “hates Native Americans” and does not understand the rights of sovereign nations.
Bloomberg has for years fought reservations in New York state that sell untaxed cigarettes. He says the practice cheats the city out of tax revenues.
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