Settlement Agreement among the United States, Delta Air Lines, Inc. and H Remidez, LLC (June 25, 2025)
Summary
A settlement agreement among the United States, Delta Air Lines, Inc., and relator H Remidez, LLC, signed June 25, 2025 by the relator and July 11, 2025 by the government. It resolves the qui tam action United States ex rel. H Remidez, LLC v. Delta Air Lines, Inc., No. 1-23-cv-01116, filed March 15, 2023 in the Northern District of Georgia under 31 U.S.C. § 3730(b). The United States alleges that between March 2020 and April 2023 Delta miscalculated the Payroll Support Program compensation limits for employees paid over $425,000 in 2019 and inaccurately certified compliance in quarterly reports; Delta received approximately $11.9 billion in PSP funds and is not alleged to have misused them. Delta agrees to pay $8,100,000 plus interest, including $4,050,000 in restitution; the relator receives $850,500 plus $100,000 in attorney's fees. Delta denies the allegations.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
SETTLEMENT AGREEMENT
This Settlement Agreement (“Agreement”) is entered into among the United
States of America, acting through the United States Department of Justice and on behalf
of the United States Department of the Treasury (collectively the “United States”), Delta
Air Lines, Inc. (“Delta”), and H Remidez, LLC, and its owners, their heirs, and the
successors, attorneys, agents, and assigns of any of them (“Relator”) (hereafter
collectively referred to as “the Parties”), through their authorized representatives.
RECITALS
A. Delta is a global airline carrier headquartered in Atlanta, Georgia.
B. On March 15, 2023, H Remidez, LLC filed a qui tam action in the United
States District Court for the Northern District of Georgia captioned United States ex rel.
H Remidez, LLC v. Delta Air Lines, Inc., No. 1-23-cv-01116, pursuant to the qui tam
provisions of the False Claims Act, 31 U.S.C. § 3730(b) (“the Civil Action”).
C. The United States contends that it has certain civil claims against Delta
arising from the conduct described below in Paragraphs D and E. That conduct is
referred to below as the Covered Conduct.
D. On April 20, 2020, Delta entered into an agreement with the United States
Department of the Treasury (“UST”) pursuant to the CARES Act and the Payroll Support
Program (“PSP”). Under the PSP agreement, Delta assumed the obligation to meet
certain conditions in exchange for accepting and retaining PSP funds from UST. Delta
was required to use those funds to pay and retain employees on its payroll during the
COVID-19 pandemic. Paragraphs 7 and 8 of that agreement also required that for
employees and officers of Delta whose compensation for calendar year 2019 exceeded
$425,000, total compensation for “any 12 consecutive month” period could not exceed
certain specified levels during the next two years. On January 15, 2021 and April 23,
2021, Delta executed additional PSP agreements that extended the compensation limit
period to April 1, 2023 and provided additional program funds to Delta. In total, Delta
received approximately $11.9 billion in funds through the PSP program, of which at least
$8.2 billion was provided in the form of grants that do not have to be repaid. The PSP
agreements contained “Remedies” provisions, which provide the government the right to
demand the return of funds it paid Delta in the event of a breach of the agreements. Delta
is not alleged to have misused PSP funds or otherwise to have violated the no-layoff
provisions of the PSP agreements.
E. The United States alleges that between March 2020 and April 2023, Delta
incorrectly calculated compensation limits under the PSP agreements, and thus the
compensation it awarded to some corporate officers and employees making over
$425,000 in calendar year 2019 exceeded the limits set by the PSP agreements. Delta
then violated the False Claims Act by (a) inaccurately certifying compliance with PSP
Paragraphs 7 and 8 in quarterly reports submitted to UST, and (b) not notifying UST of
the breach, once it was discovered, which would have given the government the right to
demand the return of funds.
F. This Settlement Agreement is neither an admission of liability by Delta
nor a concession by the United States that its claims are not well founded. Delta denies
the allegations in Paragraph E and the Relator’s allegations in the Civil Action.
2
G. Relator claims entitlement under 31 U.S.C. § 3730(d) to a share of the
proceeds of this Settlement Agreement and to Relator’s reasonable expenses, plus
attorneys’ fees and costs.
To avoid the delay, uncertainty, inconvenience, and expense of protracted
litigation of the above claims, and in consideration of the mutual promises and
obligations of this Settlement Agreement, the Parties agree and covenant as follows:
TERMS AND CONDITIONS
1. Delta shall pay to the United States $8,100,000 plus interest accruing at a
rate of 5 percent per annum from June 12, 2025 through the date of payment (“Settlement
Amount”), by electronic funds transfer pursuant to written instructions to be provided by
the Civil Division of the United States Department of Justice no later than ten days after
the Effective Date of this Agreement. Of the Settlement Amount, $4,050,000 constitutes
restitution.
2. Conditioned upon the United States receiving the Settlement Amount and
as soon as feasible after receipt, the United States shall pay $850,500 to H Remidez, LLC
by electronic funds transfer or by wire to H Remidez, LLC’s counsel Hoyer Law Group,
PLLC (Relator’s Share).
3. Delta shall pay to H Remidez, LLC $100,000 (Attorney’s Fees Amount)
pursuant to 31 U.S.C. § 3730(d) in one lump sum payment by electronic funds transfer or
by wire to H Remidez, LLC’s counsel Hoyer Law Group, PLLC, pursuant to written
instructions to be provided by Hoyer Law Group, PLLC, no later than ten days after the
Effective Date of this Agreement.
3
4. Subject to the exceptions in Paragraph 6 (concerning reserved claims)
below, and upon the United States’ receipt of the Settlement Amount, the United States
releases Delta, together with its current and former parent corporations; direct and
indirect subsidiaries; brother or sister corporations; divisions; current or former corporate
owners; and the corporate successors and assigns of any of them, from any civil or
administrative monetary claim the United States has for the Covered Conduct under the
False Claims Act, 31 U.S.C. §§ 3729-3733; the Program Fraud Civil Remedies Act, 31
U.S.C. §§ 3801-3812; the Contract Disputes Act, 41 U.S.C. §§ 7101-7109; the Remedies
provisions of the PSP agreements; or the common law theories of breach of contract,
payment by mistake, unjust enrichment, and fraud.
5. Upon the United States’ receipt of the Settlement Amount plus interest
due under Paragraph 1 and upon Relator’s receipt of the Attorney’s Fees Amount under
Paragraph 3, Relator releases Delta from any civil monetary claim the Relator has on
behalf of the United States for the Covered Conduct under the False Claims Act, 31
U.S.C. §§ 3729-3733.
6. Notwithstanding the releases given in Paragraph 4 of this Agreement, or
any other term of this Agreement, the following claims and rights of the United States are
specifically reserved and are not released:
a. Any liability arising under Title 26, U.S. Code (Internal Revenue
Code);
b. Any criminal liability;
c. Except as explicitly stated in this Agreement, any administrative
liability or enforcement right, or any administrative remedy,
4
including the suspension and debarment rights of any federal
agency;
d. Any liability to the United States (or its agencies) for any conduct
other than the Covered Conduct;
e. Any liability based upon obligations created by this Agreement;
f. Any liability of individuals;
g. Any liability for express or implied warranty claims or other
claims for defective or deficient products or services, including
quality of goods and services;
h. Any liability for failure to deliver goods or services due;
i. Any liability for personal injury or property damage or for other
consequential damages arising from the Covered Conduct.
7. Relator shall not object to this Agreement but instead shall agree and
confirm that this Agreement is fair, adequate, and reasonable under all the circumstances,
pursuant to 31 U.S.C. § 3730(c)(2)(B). Conditioned upon Relator’s receipt of the
Relator’s Share, Relator fully and finally releases, waives, and forever discharges the
United States, its agencies, officers, agents, employees, and servants, from any claims
arising from the filing of the Civil Action or under 31 U.S.C. § 3730, and from any
claims to a share of the proceeds of this Agreement and/or the Civil Action.
8. Upon the United States’ receipt of the Settlement Amount, plus interest
due under Paragraph 1 and Relator’s receipt of the Attorney’s Fees Amount under
Paragraph 3, Relator fully and finally releases, discharges and holds harmless Delta,
together with its current or former direct or indirect parent and member corporations,
5
divisions, current or former owners, and current and former officers, directors,
employees, and affiliates; and the successors and assigns of any of them, from any and all
claims, known or unknown, asserted or unasserted, arising from the filing of the Civil
Action, under 31 U.S.C. § 3730, at common law, in equity, or otherwise.
9. Delta waives and shall not assert any defenses Delta may have to any
criminal prosecution or administrative action relating to the Covered Conduct that may be
based in whole or in part on a contention that, under the Double Jeopardy Clause in the
Fifth Amendment of the Constitution, or under the Excessive Fines Clause in the Eighth
Amendment of the Constitution, this Agreement bars a remedy sought in such criminal
prosecution or administrative action.
10. Delta fully and finally releases the United States, its agencies, officers,
agents, employees, and servants, from any claims (including attorneys’ fees, costs, and
expenses of every kind and however denominated) that Delta has asserted, could have
asserted, or may assert in the future against the United States, its agencies, officers,
agents, employees, and servants, related to the Covered Conduct or the United States’
investigation or prosecution thereof.
11. Delta fully and finally releases the Relator from any claims (including
attorneys’ fees, costs, and expenses of every kind and however denominated) that Delta
has asserted, could have asserted, or may assert in the future against the Relator, related
to the Civil Action and the Relator’s investigation and prosecution thereof.
12. a. Unallowable Costs Defined: All costs (as defined in the Federal
Acquisition Regulation, 48 C.F.R. § 31.205-47) incurred by or on behalf of Delta, and its
6
present or former officers, directors, employees, shareholders, and agents in connection
with:
(1) the matters covered by this Agreement;
(2) the United States’ audit(s) and civil investigation(s) of the
matters covered by this Agreement;
(3) Delta’s investigation, defense, and corrective actions
undertaken in response to the United States’ audit(s) and
civil investigation(s) in connection with the matters
covered by this Agreement (including attorneys’ fees);
(4) the negotiation and performance of this Agreement;
(5) the payment Delta makes to the United States pursuant to
this Agreement and any payments that Delta may make to
Relator, including costs and attorneys’ fees,
are unallowable costs for government contracting purposes (hereinafter referred to as
Unallowable Costs).
b. Future Treatment of Unallowable Costs: Unallowable Costs will
be separately determined and accounted for by Delta, and Delta shall not charge such
Unallowable Costs directly or indirectly to any contract with the United States.
c. Treatment of Unallowable Costs Previously Submitted for
Payment: Within 90 days of the Effective Date of this Agreement, Delta shall identify
and repay by adjustment to future claims for payment or otherwise any Unallowable
Costs included in payments previously sought by Delta or any of its subsidiaries or
affiliates from the United States. Delta agrees that the United States, at a minimum, shall
7
be entitled to recoup from Delta any overpayment plus applicable interest and penalties
as a result of the inclusion of such Unallowable Costs on previously-submitted requests
for payment. The United States, including the Department of Justice and/or the affected
agencies, reserves its rights to audit, examine, or re-examine Delta’s books and records
and to disagree with any calculations submitted by Delta or any of its subsidiaries or
affiliates regarding any Unallowable Costs included in payments previously sought by
Delta, or the effect of any such Unallowable Costs on the amount of such payments.
13. Delta agrees to cooperate fully and truthfully with the United States’
investigation of individuals and entities not released in this Agreement. Upon reasonable
notice, Delta shall encourage, and agrees not to impair, the cooperation of its directors,
officers, and employees, and shall use its best efforts to make available, and encourage,
the cooperation of former directors, officers, and employees for interviews and testimony,
consistent with the rights and privileges of such individuals. Delta further agrees to
furnish to the United States, upon request, complete and unredacted copies of all non-
privileged documents, reports, memoranda of interviews, and records in its possession,
custody, or control concerning any investigation of the Covered Conduct that it has
undertaken, or that has been performed by another on its behalf.
14. This Agreement is intended to be for the benefit of the Parties only.
15. Upon receipt of the payments described in Paragraph 1 and 3, above, the
Parties shall promptly sign and file in the Civil Action a Joint Stipulation of Dismissal of
the Civil Action pursuant to Rule 41(a)(1).
16. Each Party shall bear its own legal and other costs incurred in connection
with this matter, including the preparation and performance of this Agreement.
8
17. Each Party and signatory to this Agreement represents that it freely and
voluntarily enters into this Agreement without any degree of duress or compulsion.
18. This Agreement is governed by the laws of the United States. The
exclusive jurisdiction and venue for any dispute relating to this Agreement is the United
States District Court for the Northern District of Georgia. For purposes of construing this
Agreement, this Agreement shall be deemed to have been drafted by all Parties to this
Agreement and shall not, therefore, be construed against any Party for that reason in any
subsequent dispute.
19. This Agreement constitutes the complete agreement between the Parties.
This Agreement may not be amended except by written consent of the Parties.
20. The undersigned counsel represent and warrant that they are fully
authorized to execute this Agreement on behalf of the persons and entities indicated
below.
21. This Agreement may be executed in counterparts, each of which
constitutes an original and all of which constitute one and the same Agreement.
22. This Agreement is binding on Delta’s successors, transferees, heirs, and
assigns.
23. This Agreement is binding on Relator’s owners, and the successors,
transferees, heirs, and assigns of Relator and its owners.
24. All parties consent to the United States’ disclosure of this Agreement, and
information about this Agreement, to the public.
9
25. This Agreement is effective on the date of signature of the last signatory to
the Agreement (Effective Date of this Agreement). Facsimiles of signatures shall
constitute acceptable, binding signatures for purposes of this Agreement.
[SIGNATURE PAGES FOLLOW]
10
THE UNITED STATES OF AMERICA
DATED: BY: ______________________________
Christopher Pilkerton
Acting General Counsel
United States Department of the Treasury
ANTHONY Digitally signed by
ANTHONY DECINQUE
DATED:
DECINQUE Date: 2025.07.11
7/11/2025 BY: ______________________________
09:34:14 -04'00'
Anthony DeCinque
Assistant United States Attorney
Northern District of Georgia
DATED: BY: ______________________________
James Nealon
Trial Attorney
Commercial Litigation Branch
Civil Division
United States Department of Justice
11
RELATOR
DATED: 06 / 25 / 2025 BY: _____________________________
Dr. Herbert Remidez, Jr.
DATED: 06 / 25 / 2025 BY: _____________________________
H Remidez, LLC
By its President, Dr. Herbert Remidez, Jr.
DATED: 06 / 25 / 2025 BY: _____________________________
David Scher
Hoyer Law Group, PLLC
Counsel for Relator
13
Doc ID: f83df88ccda9fa9aba92480e25907a292172cf95
7/11/25
7/11/25
File and source
- File
- doj-opa-media-1407901-delta-air-lines-settlement-agreement-2025-06-25.pdf
- Size
- 308,418 bytes
- SHA-256
- 42982acd9b7c9192ada0a9341cee178629370d54a61ae2d0b90e0000b2298d89
- Original
- www.justice.gov