A settlement has been reached to resolve False Claims Act allegations against American Airlines Inc.
The allegations arose from a lawsuit that claimed American Airlines Inc falsely reported the times it transferred possession of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS).
USPS contracted American Airlines to gather containers of mail from six locations around the country, as well as at numerous Defense and State department facilities abroad, and then deliver them to numerous international and domestic destinations.
Under the contracts, American Airlines receives payment upon submitting electronic scans of the mail containers to USPS. These electronic scans report to USPS the actual time the mail was delivered to its destination. The contracts specified penalties for mail that was delivered late or to the wrong location.
“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. “The Department of Justice vigorously pursues all manner of fraudulent conduct that undermines the benefits that the government has bargained for.”
