A settlement has been reached to resolve False Claims Act allegations against British Airways and Iberia Airlines.
The allegations arose from a lawsuit that claimed British Airways and Iberia Airlines falsely reported the times they transferred possession of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS).
"The U.S. Postal Service contracts with commercial airlines for the safeguarding and timely delivery of U.S. Mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases and other locations," said Steven Stuller, Acting Special Agent in Charge, U.S. Postal Service Office of Inspector General. "The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within the contract mail delivery process; in this case the falsification of delivery information. We worked hand-in-hand with the Department of Justice's Civil Division to help ensure a reasonable resolution and to hold those parties accountable for their actions. We applaud the exceptional work by the investigative and legal team and know it will have a positive impact on Postal Service operations."
Reportedly, under contracts with the United States Postal Service (USPS), the airlines were supposed to take possession of mail at six locations in the United States, or at numerous Department of Defense and State Department locations abroad, and then deliver that mail to numerous international and domestic destinations. The airlines were not eligible for payment under the contracts, however, unless they sent the USPS electronic scans of the mail bins that showed what time the mail was delivered at the specified destinations.
According to the government, allegedly, the scans submitted by British Airways and Iberia falsely reported the time the airlines transferred possession of the mail.
