Avis Budget Group to Pay $10.1M to Settle False Claims Act Allegations

The U.S. Attorney's Office for the District of New Jersey said car-rental company Avis Budget Group Inc. will pay $10.1 million to settle claims that it violated the False Claims Act. The office alleged that from 2014 through 2019 the company submitted false claims and was paid by the U.S. for supplemental car rental charges.

According to the contentions of the U.S. Attorney’s Office contained in the settlement agreement:

Avis Budget made false claims in connection with obtaining payments under an agreement with the U.S. managed by the Department of Defense Travel Management Office. From Jan. 1, 2014, through Dec. 31, 2019, Avis Budget submitted false claims and received payment from the U.S. for unallowable supplemental charges to car rentals, including collision damage waiver/loss damage waiver insurance; supplemental liability coverage/additional liability insurance; personal accident insurance; personal effects coverage/personal effects protection; and late turn-in fees. In addition to being unallowable, some of the fees Avis Budget charged were already included in the government rental rate.  

The claims settled by this agreement are allegations only, and there has been no determination of liability, the office said.