DOJ orders Hahn Air to pay $27M over travel fee false claims

DOJ

German-based Hahn Air Lines and its U.S. subsidiary agreed to pay $26.8 million to settle alleged violations of the False Claims Act over knowingly failing to provide remittance for travel fees it collected from commercial airline passengers flying into or within the United States.

Hahn Air and Minneapolis-based Hahn Air USA will pay approximately $18.3 million in federal restitution, the Department of Justice (DOJ) said in a settlement agreement dated Feb. 9. The airline was credited about $16 million for previous remittance, bringing the total owed to the government to about $10.7 million.

The settlement resolves claims brought under the qui tam provision of the False Claims Act by MGSNOVA Advisory, the DOJ said in a press release Thursday. The whistleblower will receive approximately $4.8 million of the settlement amount, including an additional $355,000 to cover attorneys’ fees, expenses, and costs related to the civil action.

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