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Aug 28, 05:24 PM
Kimberly-Clark Pays $40 Million, Delta Settles Fuel-Dump Suit for $79 Million
Law
California
Business
United States

Kimberly-Clark Pays $40 Million, Delta Settles Fuel-Dump Suit for $79 Million

Authors
  • U.S. Department of Justice
  • First Squawk
  • Reuters Legal
5

Kimberly-Clark Corp. agreed to pay as much as $40.4 million under a deferred prosecution agreement with the U.S. Department of Justice to resolve a criminal charge that it sold adulterated MicroCool surgical gowns. The company admitted an employee conducted fraudulent testing to avoid an FDA pre-market review after design changes, leading to the sale of millions of gowns falsely marketed as offering the highest level of protection. The payment comprises a $24.5 million criminal penalty, $3.9 million in forfeited profits and up to $12 million for victim compensation, and requires continued cooperation and strengthened compliance controls. Separately, Delta Air Lines will pay $78.75 million to settle a class-action lawsuit stemming from a January 2020 jet-fuel dump that coated homes and schools in Los Angeles and Orange counties. The accord, disclosed in federal court filings, compensates property owners and resolves claims that the airline negligently released fuel over populated areas while returning to Los Angeles International Airport.

Written with ChatGPT .

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