FedEx Sues NY Attorney General Cuomo Over Investigation

FedEx Corp (NYSE:FDX) sued New York Attorney General Andrew Cuomo Tuesday seeking to stop an investigation of the company, arguing that his office had exceeded its authority.

A lawsuit filed in Manhattan federal court said that despite a "well-settled prohibition against state laws regulating the prices, routes, and/or services of air carriers, the New York Attorney General seeks to regulate FedEx's prices, routes and services through its ongoing investigation."

Cuomo's office served FedEx with a subpoena for the purpose of determining whether to take an unspecified action against the company under New York Executive Law, according to the complaint.

It said the June 8 subpoena, which FedEx said it agreed to respond to by Aug. 31, demanded production of and testimony regarding FedEx rates, routes, prices and/or services.

In the lawsuit FedEx is asking the federal court to block the investigation.

A spokesman for Cuomo's office could not immediately be reached to comment.

Cuomo, a Democrat, is the front-runner in the race to become New York's next governor. The election is in November.

The case is FedEx Corp v Andrew Cuomo, office of the Attorney General of the State of New York, U.S. District Court for the Southern District of New York, No. 10-6343. (Reporting by Grant McCool, editing by Matthew Lewis)