Last week, Delta Airlines agreed to settle claims brought by the Justice Department under the False Claims Act for $10.5 million.
The U.S. Postal Service contracts with Delta (and other airlines) to take control of U.S. mail at several U.S. or international locations, and to timely deliver that mail either domestically or abroad. The contract with Delta provides that Delta must submit electronic scans of the mail receptables to USPS, which report the time and date the mail was delivered in order to receive payment. The contract specifies penalties for delayed mail. The government alleged that Delta was falsely reporting the time and date the mail was delivered per the electronic scans to receive payment, eventually leading to a government investigation and claims under the False Claims Act.
The settlement resolves all claims against Delta for its alleged conduct relating to delayed mail delivery. This settlement is the sixth civil settlement involving air carrier liability for allegedly false delivery scans under these contracts, which underscores the breadth and depth of FCA liability.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection with federal criminal and civil investigations and False Claims Act litigation in both federal and state courts. If you need assistance with such a matter, please contact us today.