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Delta Air Lines agrees to pay $8.1M in settlement alleging misuse of pandemic-relief funds

Delta Air Lines agrees to pay $8.1M in settlement alleging misuse of pandemic-relief funds

ATLANTA, GA — Atlanta-based Delta Air Lines has agreed to an $8.1M lawsuit with the federal government over allegations that the company misused pandemic relief funds created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

The settlement follows a whistleblower’s claim that the airline ignored the implementation of pay caps for its executives.

This was a requirement to receive funds under the federal payroll support program that was created in 2020.

The whistleblower also accuses Delta of falsely claiming it abided by those pay caps.

The office of the U.S. Attorney for the Northern District of Georgia says the settlement doesn’t determine liability for the claims.

“When companies accept federal assistance, especially generous pandemic-relief funds like those at issue here, they owe a duty to the American people to respect the conditions placed on those funds,” said U.S. Attorney Theodore S. Hertzberg. “We will continue to enforce all available laws to punish the misuse of taxpayers’ money.”

Delta says in a statement it still believes the claims are without merit.



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