Delta Air Lines Agrees to Pay $8.1M For Alleged False Claims Act Violations Related to Misuse of Pandemic Relief Funds

Posted August 5, 2025

By the 91pornWhistleblower Team

Delta Air Lines will pay $8,100,000 to settle allegations that it violated the False Claims Act by giving compensation to corporate officers and employees that surpassed monetary limits the company agreed to in 2020. This was part of the Department of the Treasury’s Payroll Support Program (PSP) that placed compensation caps for employees of participating companies.[1]

Pandemic Relief – The Department of the Treasury’s Payroll Support Program (PSP)

The PSP was created by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security Act (CARES). This provided payroll support to passenger and cargo air carriers and contractors to continue payments of employee wages, salaries, and benefits.[2]

Participating Air Carriers Were Required to Follow Conditions

The program was administered by the Department of Treasury (Treasury). Participating air carriers were required to enter into written agreements with the Treasury that detailed conditions to follow in exchange for the PSP funds. Requirements included limitations on the compensation that PSP participants could pay to employees that earned over $425,000 annually in 2019.[3]

Delta’s PSP Agreements in 2020 and 2021

In 2020 and 2021, Delta entered into PSP agreements with the Treasury and agreed to the compensation limits. Delta received roughly $11.9 billion in PSP funds, including at least $8.2 billion from grants that did not have to be repaid.[4]

How Delta Allegedly Violated the False Claims Act

By falsely certifying compliance with PSP requirements in quarterly reports submitted to the Treasury, and failing to notify of a breach when discovered by Delta, the company allegedly violated the False Claims Act.

The case settles charges that from March 2020 to April 2023, Delta allegedly awarded compensation to certain corporate officers and employees that far exceeded the limits set by the PSP agreements.

“The PSP was intended to provide critical assistance to the airline industry during the pandemic,” commented Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The department is committed to holding accountable those who failed to abide by the terms and conditions governing their receipt and use of federal funds.”

Case Brought by a Whistleblower

This case was brought under the qui tam (or whistleblower provisions) of the False Claims Act by H. Remidez LLC. Under those provisions, private parties (called relators) can file lawsuits on behalf of the government and earn up to 30% of the recovery. In this case, the whistleblower will receive $850,500.

COVID-19 Fraud

COVID-19 fraud has taken many forms. Here are just some types of pandemic-related fraud:

Our Firm Helps COVID-19 Fraud Whistleblowers

According to 91pornpartner Marlene Koury, “Years later, COVID-19 related fraud is still being exposed. Whistleblowers are essential to bringing such fraud to light and aiding government enforcement efforts to hold bad actors accountable.”

If you blow the whistle on a company or individuals who committed fraud in applying for COVID-19 relief funds, spending those funds, or other fraud, you may be eligible for a reward under the False Claims Act or other whistleblower reward programs. If you would like more information, believe you have a case, or would like to speak to a member of Constantine Cannon’s whistleblower lawyer team, please contact us for a confidential consultation.