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

New faces at Seven Hills Golf and Country Club

Seven Hills Golf and Country Club is getting ready for it’s 2019… Continue reading

Scotiabank faces disgruntled Port Alice crowd

Residents were told the ATM will not be staying, along with the vault and other physical attributes.

VIDEOS: North Island Bantam Eagles place second at Tier 3 Bantam Championships in Port Hardy

“This is now a piece of North Island history and will be talked about for many years to come.”

LETTER TO THE EDITOR: Tier 3 Bantam Championships

“The packed arena and electricity within was fantastic.”

Port Hardy RCMP issues warning about recent overdose

“Our primary concern is public safety. We are urging the public to be aware of what is circulating.”

VIDEO: The ‘most cosmopolitan’ of butterflies could migrate to B.C.

The painted lady butterfly will likely arrive this summer from Southern California

Inspirational Vancouver Island youngster dies after battle with brain cancer

Kaiden Finley ‘was seriously the strongest 11-year-old’

North Island Peewee Eagles go 2-2 at Tier 3 Championships in Powell River

All told, it was a pretty successful season for the North Island Peewee Eagles.

Is it a homicide? B.C. woman dies in hospital, seven months after being shot

Stepfather think Chilliwack case should now be a homicide, but IHIT has not confirmed anything

PHOTO OF THE WEEK: Zeballos Inlet

Check out this beautiful photograph of the Zeballos Inlet from Alanna Janisse!… Continue reading

Indecent caller handed 18-month conditional sentence

Vancouver Island man pleaded guilty to making indecent phone and video calls to women across B.C.

Sources say Trudeau rejected Wilson-Raybould’s conservative pick for high court

Wilson-Raybould said Monday “there was no conflict between the PM and myself”

First Nations public art piece stolen in Nanaimo

Spindle Whorl went missing over the weekend, according to Nanaimo RCMP

Father-son duo at B.C. Children’s Hospital helps new dads fight depression

The pair teamed up to introduce the only known research-based mindfulness workshop for new dads

Most Read