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Delta Air Lines has agreed to pay $8.1 million to settle a lawsuit mounted by the US Department of Justice alleging misuse of federal pandemic-relief funds.
The lawsuit alleges Delta had violated conditions relating to a payroll support scheme under the Coronavirus Aid, Relief and Economic Security Act (Cares Act), which was introduced by the US government during the Covid-19 pandemic to provide financial support to companies.
Under the conditions set out, companies accepting federal relief funds must impose compensation caps on executives who earned more than $425,000 in 2019.
Delta, which received $11.9 billion in payroll support funding, has challenged the allegations, which were first surfaced by a whistleblower, adding that it “strongly believes” it had fully complied with the conditions set out in the scheme.
The allegations first came to light through a third-party financial researcher, who subsequently filed a whistleblower lawsuit. --->READ MORE HERE
Whistleblower accused airline of not capping its executives’ salaries while accepting taxpayer funds.
One of Atlanta’s most iconic corporate citizens is paying more than $8 million to settle a lawsuit alleging it misused federal relief funds provided to companies during the COVID-19 pandemic.
On Tuesday, the U.S. Justice Department said Delta Air Lines is settling a lawsuit accusing the global transportation giant of violating conditions Congress placed on federal relief funds provided to Delta under the payroll support program (PSP).
The PSP was created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide financial support to airlines and other businesses during the pandemic. Companies accepting federal relief money had to impose compensation caps on highly paid executives.
The federal government alleged Delta violated these caps and then certified it had abided by them.
The investigation began when a financial researcher filed a whistleblower lawsuit under the False Claims Act, a federal law that imposes civil liability on anyone who submits false claims to the federal government or its contractors.
The whistleblower alleged Delta violated the terms of the PSP, which was created in early 2020 to offer domestic airlines and other businesses money through grants and low-interest loans administered by the U.S. Treasury Department. --->READ MORE HEREFollow links below to relevant/related stories and resources:
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