AMERICAN AIRLINES FINED $22.1 MILLION FOR FAILING TO TIMELY DELIVER MAIL
September 23, 2019
On August 20, 2019, American Airlines (American) agreed to a $22.1 million settlement with the U.S. Department of Justice concerning claims that it falsely reported the times that it transferred possession of U.S. mail to foreign postal administrators or other intended recipients. American, like many other carriers, contracts with the United States Postal Service (USPS) to deliver mail. In this particular case, American had contracted with USPS to take possession of receptacles of U.S. mail at U.S. locations or at various Department of Defense and State Department locations abroad, and subsequently deliver them to a number of international and domestic end points. In fulfilling these obligations American was required to submit electronic scans of the mail receptacles to USPS, and report the time that the mail was delivered at a given location. The contract with USPS specified penalties in the event that mail was delivered late, or to the wrong location. A 2015 investigation by the Justice Department of American’s 2009 and 2011 USPS contracts seems to be the origin of the penalty, and American confirmed in a statement that “The allegations focused on conduct that was remedied years ago, and we have invested in new equipment and procedures to ensure that we are in full compliance with our commitments.”
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com or 202-659-6622); Drew Derco (dderco@eckertseamans.com or 202-659-6665), or Alexander Matthews (amatthews@eckertseamans.com or 202-659-6633).
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