AFLYY Air France ADS (PK)

By Kathryn Hardison

Air France and KLM Airlines agreed to pay $3.9 million to settle allegations that they falsely reported delivery times of U.S. mail carried internationally.

The U.S. Justice Department said Friday that the airlines, subsidiaries of Air France-KLM Group, would pay the settlement to resolve their alleged liability under the False Claims Act.

The U.S. Postal Service contracted Air France and KLM Airlines to pick up mail at various locations and deliver it to destinations in the U.S. and abroad. The international air carriers were required to submit electronic scans of the mail receptacles to USPS to report when mail was delivered, but allegations were made that the carriers falsely reported delivery times and that they transferred possession of the mail.

The Justice Department said this marks the seventh settlement involving air-carrier liability for false delivery scans under such USPS contracts, and the U.S. has recovered more than $84 million combined as a result of its investigation.

On Thursday, Delta Air Lines Inc. agreed to pay $10.5 million to settle similar allegations.

Air France and KLM didn't immediately respond for comment.

Write to Kathryn Hardison at kathryn.hardison@wsj.com

(END) Dow Jones Newswires

July 01, 2022 15:11 ET (19:11 GMT)

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