Delta Airlines — Payroll Support Program Violations
Delta Airlines Pays Over $8 Million for PSP Violations
Source: U.S. Department of Justice
TL;DR: Delta Airlines Pays Over $8 Million for PSP Violations This case resulted in a $8 Million resolution and demonstrates the impact of whistleblower protections in recovering funds from fraud.
Summary
Delta Airlines agreed to pay over $8 million to resolve False Claims Act allegations that it violated the terms of its Payroll Support Program funding agreement by failing to impose agreed compensation caps on highly paid executives and falsely certifying compliance with the same. DOJ alleged Delta received pandemic relief funds conditioned on executive compensation limits that it then failed to enforce.
Our Take
Pandemic relief executive compensation cases involve the gap between what companies agreed to do in exchange for relief funds and what they actually did. Insiders often have access to the funding agreements, compensation records, board discussions about executive pay, and any communications about whether the caps were being followed. If you saw a company take relief money while preserving executive compensation, the evidence is in the pay records and the internal awareness of the certification requirements.
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Notice
The summaries above are based on publicly available information released by the U.S. Department of Justice and are provided for informational purposes only. They do not constitute legal advice, investigative findings, or allegations by Disclosure Strategy. Our commentary reflects general, experience-based observations about how False Claims Act matters commonly arise and is not a statement about any party's liability.