The State of California is suing a New Jersey import company for $1.7 million (around £850,000) for allegedly smuggling fruit into the US that could contain a harmful pest.

The lawsuit alleges that New Jersey-based Bombino Express Worldwide imported unmarked packages of mangoes and yams from India that had not been treated to kill the Oriental fruit fly.

California attorney general Jerry Brown said yesterday: "It's not just a basket of mangoes. It's the potential of introducing a lethal, expansive pest that can wreck California crops."

The Oriental fruit fly, which embeds itself and reproduces quickly in crops, has previously been a problem in Hawaii, and agriculture officials estimate that if the fly spreads to California, it could cost $176m in crop losses.

The suit was filed on July 9 in Los Angeles County Superior Court. Bombino Express had allegedly labeled the fruit boxes as "ladies apparel" or "business material," and was therefore able to import the mangoes much more quickly because the fruit did not go through the irradiation process.

Company chief executive officer Mohmed Yasin Latiwala told the US Associated Press he was surprised by the lawsuit because he has been co-operating with investigators."Nothing of this sort should come into this country," Latiwala reportedly said. "I made sure all the proper precautions are taken."