Delta Airlines has agreed to pay $8.1 million to settle allegations of misusing federal relief funds provided under the Payroll Support Program (PSP). The PSP was established by the CARES Act to support airlines and other businesses during the pandemic. The United States claims that Delta violated compensation caps for executives, a condition tied to the acceptance of these funds.
U.S. Attorney Theodore S. Hertzberg emphasized the importance of companies adhering to conditions when accepting federal assistance, stating, "We will continue to enforce all available laws to punish the misuse of taxpayers’ money."
The case originated from a whistleblower lawsuit filed under the False Claims Act, which allows individuals to bring fraud cases on behalf of the government. The whistleblower alleged that Delta exceeded executive compensation limits set by Congress for companies receiving PSP funding.
Delta received approximately $11.9 billion in PSP funds, including at least $8.2 billion in grants that did not require repayment. To qualify for this funding, Delta agreed to adhere to compensation caps until April 2023. However, it is alleged that between March 2020 and April 2023, Delta paid some executives more than allowed and falsely certified compliance with these caps.
The settlement resolves a qui tam lawsuit filed in the U.S. District Court for the Northern District of Georgia. As part of the settlement, the whistleblower will receive $825,000 plus attorney’s fees.
The investigation was conducted by multiple agencies including the U.S. Attorney’s Office for the Northern District of Georgia and involved several attorneys from different divisions.
It is important to note that while a settlement has been reached, there has been no determination of liability against Delta Airlines.
For more information, contact the U.S. Attorney’s Public Affairs Office or visit their website.