American Airlines has agreed to pay $22.1 million to resolve allegations of violations of the False Claims Act regarding the reporting of international delivery times, the Justice Department announced Tuesday.
The allegations arose from a contract between American Airlines and the United States Postal Service. Per their agreement, American Airlines was tasked with the timely delivery of mail from U.S. receptacles at six locations to both international and domestic destinations. The airline was required to submit electronic scans upon delivery to verify the time of arrival. The complaint alleged American Airlines falsely reported the time it transferred possession of the mail to avoid penalties for late delivery.
“We expect companies doing business with the government to comply with their contractual obligations,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division in a statement. “The Department of Justice vigorously pursues all manner of fraudulent conduct that undermines the benefits that the government has bargained for.”
In settling the allegations, the DOJ said there was no determination of liability.
“The allegations focused on conduct that was remedied years ago, and we have invested in new equipment and procedures to ensure that we are in full compliance with our commitments,” American Airlines said in a statement. “The U.S. Postal Service is an important customer for American, and we are glad to have corrected these procedures and put this matter behind us.”