Delta Air Lines settles for $8.1 million over pandemic relief violations

In the United States, Delta Air Lines has recently reached a settlement to pay $8.1 million due to allegations of breaching federal regulations related to COVID-19 relief funding. This settlement arises from the company's involvement in the Payroll Support Program (PSP), initiated by Congress in March 2020 under the CARES Act to provide support to airlines amid the pandemic. Under PSP, airlines were required to adhere to specific conditions concerning executive compensation, particularly limits for those earning more than $425,000 annually. The U.S. Justice Department reported that Delta knowingly awarded compensation to certain officers and employees that exceeded these limits between March 2020 and April 2023. Furthermore, the company reportedly submitted inaccurate compliance certifications and neglected to inform the government upon discovering the breach, which would have permitted the Treasury Department to recover funds. Assistant Attorney General Brett A. Shumate highlighted the importance of the PSP in delivering essential aid to the airline sector during the unprecedented crisis, emphasizing the commitment to enforcing compliance with the conditions tied to federal assistance. The settlement also includes a resolution of a lawsuit by a whistleblower who reported the discrepancies under the False Claims Act, allowing private individuals to act on behalf of the government in such cases. The whistleblower, H. Remidez LLC, is set to receive approximately $850,500 as part of the settlement. The allegations against Delta underscore the broader issues surrounding transparency and accountability for companies receiving federal aid during the pandemic. The case illustrates the potential financial and legal repercussions for businesses that fail to adhere to stipulations established in safeguarding taxpayer funds essential for industry survival during the crisis.