Personal Finance, Justice Department, Falsely, American Airlines

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American Airlines to pay US$22.1 million US fine over mail delivery times: Justice Department

American Airlines to pay US$22.1 million US fine over mail delivery times: Justice Department

21.8.2019

American Airlines to pay US$22.1 million US fine over mail delivery times: Justice Department

WASHINGTON: American Airlines Group Inc , the largest U.S. airline, will pay US$22.1 million to settle claims it falsely reported the times it ...

The United States Postal Service contracted with American to take possession of receptacles of U.S. mail at six locations and then deliver it to numerous international and domestic destinations. The settlement resolves claims American Airlines falsely reported the times it transferred possession of the mail. American did not immediately comment Tuesday.

"We expect companies doing business with the government to comply with their contractual obligations,” said Assistant Attorney General Jody Hunt, who heads the department's civil division."The Department of Justice vigorously pursues all manner of fraudulent conduct that undermines the benefits that the government has bargained for."

American said in a securities filing the Justice Department in April 2015 notified the airline it was investigating American’s 2009 and 2011 contracts with the U.S. Postal Service for the international transportation of mail by air.

The contract required American to take possession of mail at U.S. locations or at various Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations.

(Reporting by David Shepardson; Editing by Lisa Shumaker and Tom Brown)

Read more: CNA

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