British Airways, Iberia Airlines Will Pay $5.8M to Settle Charges of False Claims Act Violations
The settlement on Tuesday resolves the allegations that the airlines falsely reported the time the airlines transferred possession of the mail.
November 14, 2018 at 02:29 PM
3 minute read
The U.S. Justice Department announced on Tuesday that British Airways and Iberia Airlines agreed to pay $5.8 million to settle allegations that it falsely reported delivery times of U.S. mail being delivered internationally.
The U.S. Postal Service contracted with the two airlines to take mail to six locations in the U.S. and to various Department of Defense and State Department locations outside of the U.S. In order to be paid for their services, the airlines were required to submit electronic scans to the postal service to show the mail was delivered to specific locations. The settlement on Tuesday resolves the allegations that the airlines falsely reported the time the airlines transferred possession of the mail. They admitted no liability, however.
International Airline Group, the owner of both airlines, referred comment to the individual airlines.
In statements emailed to Corporate Counsel, both airlines said that the settlement is not an admission of wrongdoing.
“We understand how important it is for people and businesses to know that their letters and parcels will arrive safely and on time. In the interest of resolving this matter and avoiding a prolonged legal process, we have agreed on a settlement with the DOJ,” a representative for British Airways said in an email. A representative for Iberia Airlines echoed the statement.
“We have settled this case to avoid the disruption and concern of a long legal case. We understand how important it is for people and businesses to know that their letters and parcels will arrive safely and on time,” a representative from Iberia Airlines said in an email.
“The U.S. Postal Service contracts with commercial airlines for the safeguarding and timely delivery of the U.S. Mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases and other locations,” said Steven Stuller, the acting special agent in charge of the U.S. Postal Service.
Civil Division Assistant Attorney General Joseph “Jody” H. Hunt, said that government contractors are required to obey all rules when billing the United States.
“The Department of Justice will ensure that government contractors meet their obligations and charge the government appropriately,” Hunt said in the release.
The Justice Department did not respond to a request for comment beyond the press release.
British Airlines also came under scrutiny recently after it announced a data breach that involved the personal information of approximately 244,000 customers.
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