The U.S. Department of Justice announced Tuesday that they’d reached an agreement to settle allegations that Atlanta-based Delta Air Lines had misused $81. million in pandemic relief funding.
According to the statement from USDOJ, the airline was accused of violating conditions placed on federal relief funds for payroll support by U.S. Congress.
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
The payroll program in question was created by the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to support airlines and businesses with payroll needs during the COVID-19 pandemic.
“When companies accept federal assistance, especially generous pandemic-relief funds like those at issue here, they owe a duty to the American people to respect the conditions placed on those funds,” U.S. Attorney Theodore S. Hertzberg said. “We will continue to enforce all available laws to punish the misuse of taxpayers’ money.”
TRENDING STORIES:
The USDOJ began to investigate Delta when a financial researcher filed a whistleblower lawsuit under the False Claims Act over alleged violations of the Payroll Support Program’s rules.
Justice Department officials said the whistleblower claimed Delta violated the rules of the PSP by paying some corporate officers amounts above the payroll limits set by Congress for the funds.
As part of the settlement, Delta Air Lines will have to pay $8.1 million to the United States government, with $825,000 plus attorney’s fees going to the whistleblower who filed the complaint.
Delta shared the following statement on the settlement with Channel 2 Action News:
“Delta strongly believes it fully complied with all requirements of the CARES Act. At issue is a disagreement about a technical matter involving the time periods used to measure executive compensation during the pandemic. Delta has consistently maintained the claim is without merit and settled to avoid the expense and distraction of litigation. Delta remains grateful for the Treasury Department’s efforts that kept essential airline employees operating our nation’s air travel system.”
[SIGN UP: WSB-TV Daily Headlines Newsletter]
