I agree that the compensation offer was inadequate for the distress and inconvenience caused. I do not think litigation will succeed, as ultimately your grandmother did travel. I would copy your complaint to the DOT and FAA.
The error may well have been due to similar names. However, Delta was more negligent that either the TSA or border control, because the error was pointed out to them before the flight departed. The family did not notifiy the TSA or border control. It was seriously negligent of Delta to transport the passenger after being notified, and I would let the FAA and DOT know this.
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