Lance Armstrong. (Anita Ritenour/Flickr)

Lance Armstrong settles $100M lawsuit with U.S. government

Disgraced cyclist reached $5-million settlement with sponsor U.S. Postal Service

Lance Armstrong has reached a $5-million settlement with the federal government in a whistleblower lawsuit that could have sought $100 million in damages from the cyclist who was stripped of his record seven Tour de France victories after admitting he used performance-enhancing drugs throughout much of his career.

The deal announced Thursday came as the two sides prepared for a trial that was scheduled to start May 7 in Washington. Armstrong’s former U.S. Postal Service teammate Floyd Landis filed the original lawsuit in 2010 and is eligible for up to 25 per cent of the settlement.

Seeking millions spent sponsoring Armstrong’s powerhouse teams, the government joined the lawsuit against Armstrong in 2013 after his televised confession to using steroids and other performance-enhancing drugs and methods. Armstrong had already retired, but the confession shattered the legacy of one of the most popular sports figures in the world.

READ MORE: Doping from Armstrong era should not surprise

In a statement to The Associated Press, Armstrong said he’s happy to have “made peace with the Postal Service.”

“While I believe that their lawsuit against me was meritless and unfair, and while I am spending a lot of money to resolve it, I have since 2013 tried to take full responsibility for my mistakes and inappropriate conduct, and make amends wherever possible,” he said. “I rode my heart out for the Postal cycling team, and was always especially proud to wear the red, white and blue eagle on my chest when competing in the Tour de France. Those memories are very real and mean a lot to me.”

The settlement clears the 46-year-old Armstrong of the most damaging legal issues still facing the cyclist since his downfall. He had already taken huge hits financially, losing all his major sponsors and being forced to pay more than $20 million in damages and settlements in a series of lawsuits. The government’s lawsuit would have been the biggest by far.

Armstrong is still believed to be worth millions based on a vast investment portfolio and homes in Austin, Texas, and Aspen, Colorado. He also owns a pair of bicycle shops in Austin and WeDu, an endurance events company. He also hosts a regular podcast in which he interviews other sports figures and celebrities and has provided running commentary on the Tour de France.

He had built a world-wide following during his career winning races and fighting cancer.

His personal story of recovering from testicular cancer that had spread to his brain, while forcefully denying persistent rumours of doping, had built his Lance Armstrong Foundation cancer charity into a $500 million global brand and turned him into a celebrity. The foundation, which removed him from its board and renamed itself Livestrong, has seen donations and revenue plummet since Armstrong’s confession.

Armstrong’s team was already under the Postal Service sponsorship when he won his first Tour de France in 1999. The media frenzy that followed pushed the agency to sign the team for another five years. Armstrong and his teams dominated cycling’s marquee event, winning every year from 1999-2005.

His cheating was finally uncovered in 2012 when the U.S. Anti-Doping Agency, armed with sworn testimony from Landis and other former teammates, moved to strip Armstrong of his titles.

Landis, himself a former doping cheat who was stripped of his 2006 Tour de France title, sued Armstrong under the federal False Claims Act, alleging Armstrong and his team committed fraud against the government when they cheated while riding under the Postal Service banner. According to court records, the contract paid the team, which was operated by Tailwind Sports Corp., about $32 million from 2000 to 2004. Armstrong got nearly $13.5 million.

Under the lawsuit, the government could have pursued “treble” damages, which could have reached the $100 million range. As the person who filed the original lawsuit, Landis is eligible for up to 25 per cent of the settlement, which will include an additional $1.65 million paid to Landis’ attorneys.

Armstrong had claimed he didn’t owe the Postal Service anything because the agency made far more off the sponsorship than it paid; Armstrong’s lawyers introduced internal studies for the agency that calculated benefits in media exposure topping $100 million. The government countered that Armstrong had been “unjustly enriched” through the sponsorship and that the negative fallout from the doping scandal tainted the agency’s reputation.

Jim Vertuno, The Associated Press

Just Posted

VIDEO: North Island female minor hockey jamboree a big success story

“Success is measured by the smiles on the players’ faces, not by the scoreboard.”

FOLLOW-UP: Shelley Downey speaks on her Conservative candidacy

“I anticipate requesting a leave of absence from Port McNeill council,” Downey said.

B.C. to move salmon farms out of coastal migration route

Broughton Archipelago plan set to start in spring of 2019

New wind warning for most of Vancouver Island

Forecasters are calling for strong winds up to 90km/h for some areas

Mount Washington opening for winter season this weekend

The resort’s original opening day was delayed due to lack of snow

VIDEO: North Island female minor hockey jamboree a big success story

“Success is measured by the smiles on the players’ faces, not by the scoreboard.”

Canucks score 3 power-play goals in 4-2 win over Oilers

Vancouver sniper Boeser has 6 goals in last 5 games

VIDEO: North Island Bantam Eagles show ‘true grit’ in back to back wins over Powell River Kings

“We showed some real grit digging down deep for the two points.”

Microscopic parasite found in Prince Rupert water affecting thousands

More than 12,000 residents affected by the boil water advisory issued Dec. 14

Trudeau lashes out at Conservatives over migration “misinformation”

Warning against the “dangers of populism,” Trudeau says using immigration as a wedge political issue puts Canada’s future at risk.

B.C. hockey coach creates ‘gear library’ to remove cost barrier of sport

Todd Hickling gathered donations and used gear to remove the cost barrier for kids to play hockey.

Canada’s ambassador meets with second detainee in China

Global Affairs says John McCallum, Canada’s ambassador to China, met with Spavor Sunday

‘They’re coming:’ Flying cars may appear in urban skies by 2023

Air taxis will number 15,000 and become a global market worth $32 billion by 2035

B.C. VIEWS: Andrew Wilkinson on taxes, ICBC and union changes

Opposition leader sees unpredictable year ahead in 2019

Most Read