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Delta Airlines To Pay $10.5 Mln To Settle Allegations Over U.S. Mail Delivery Reports

Delta Airlines Inc. (DAL) has agreed to pay $10.5 million to settle its alleged liability under the False Claims Act for falsely reporting information about the transfer of U.S. mail to foreign posts or other intended recipients under contracts with the U.S. Postal Service or USPS, the U.S. Justice Department said in a statement.

USPS contracted with Delta to take possession of receptacles of U.S. mail at six locations in the United States or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations.

To obtain payment under the contracts, Delta was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the identified destinations.

The U.S. Justice Department noted that the contracts specified penalties for mail that was delivered late or to the wrong location. The settlement resolves allegations that scans submitted by Delta falsely reported the time and fact that it transferred possession of the mail.

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