Authorities say three smoke shops that operated on a Long Island Indian reservation must pay New York City more than $10 million for selling untaxed cigarettes outside the tribe.

The Daily News reports that a Brooklyn federal judge prohibited the shops from ever selling untaxed cigarettes again. They operated from the Poospatuck Reservation in Mastic.

New York sued the smoke shop sellers in 2008, charging they sold the cigarettes outside the tribe for huge profits. They were permitted to sell untaxed cigarette to members of the tribe only.

The lawsuit claimed that the cheaper-priced cigarettes hurt legitimate city businesses.

(AP)