Delta Settles False Claims Act Case for $8.1M
Delta Air Lines Inc. has agreed to pay $8,100,000 to settle allegations of violating the False Claims Act. The settlement resolves claims brought by H. Remidez LLC under the qui tam or whistleblower provisions of the Act.
Delta allegedly exceeded compensation limits for corporate officers and employees as part of its participation in the Payroll Support Program (PSP). The PSP was established by Congress in 2020 under the CARES Act to provide payroll support to air carriers. Delta allegedly inaccurately certified compliance with PSP requirements in quarterly reports to Treasury.
The violation involved awarding compensation exceeding the agreed limits of $425,000 for certain corporate officers and employees. Delta did not notify Treasury of the breach once it was discovered by the company. The whistleblower, H. Remidez LLC, accused Delta Air Lines of not refunding tickets for flights canceled due to the COVID-19 pandemic between March 2020 and April 2023.
Delta Air Lines Inc. has agreed to pay $8,100,000 to settle these allegations. The whistleblower, H. Remidez LLC, will receive $850,500 in connection with the settlement. It is important to note that the settlement resolves claims and there has been no determination of liability.
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