American Airlines settles false claims act allegations
The US justice department has announced that American Airlines has agreed to pay approximately USD 22.1 million to resolve its alleged liability under the false claims act.
The United States Postal Service (USPS) contracted with the airline to take possession of receptacles of US mail at six locations in the USA or at various locations of the department of defence and the state department abroad, and then deliver them to international and domestic destinations.
To obtain payment under the contracts, the carrier was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the specified destinations.
The contracts specified penalties for mail that was delivered late or to the wrong location. The settlement resolves allegations that scans submitted by American Airlines falsely reported the time it transferred possession of the mail. (ah)