A class-action lawsuit has been launched in Federal Court against Ottawa for failing to collect taxes from illegal smoke shacks.
It's similar to another lawsuit on behalf of tobacco farmers that was filed last year in Ontario court against both the federal and provincial governments.
Court documents accuse Ottawa of ignoring ``flagrant violations''of the prohibition on the sale of contraband tobacco.
The $500-million suit also claims the government allowed the open trade of these products on First Nation reserves through illegal outlets established off reserve.
The allegations have not been proven in court.
