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

Port Alberni residents enjoy public tours on Coast Guard vessel

PromoScience Expedition offered the public a chance to learn about marine research

Coast Guard vessel open for second day of public tours on Alberni waterfront

Talk to marine scientists, learn about research equipment on CCGS Vector

Port Alberni walks for World Food Day

John Paul II Catholic School students walked to end world hunger

San Group announces plans to build new sawmill in Port Alberni

San Group has purchased 25 acres of Catalyst Paper land on Stamp Avenue for its expansion

Two Port Alberni cannabis dispensaries raided on legalization day

Leaf Compassion and Cannabis Club ticketed for “unlawful sale” of cannabis

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

Team Canada gold medal winners for first time in world curling championship

Team Canada earned gold in Kelowna at the 2018 Winn Rentals World Mixed Curling Championship

B.C. passenger caught smoking weed in a car issued $230 fine

Saanich police did a field sobriety test on the driver and deemed it safe for him to drive

Payette invites critics to ‘come and spend a few days’ with her

Governor General Julie Payette made her first official to B.C. back in March

More pot stores expected in B.C. in coming ‘weeks and months’: attorney general

Attorney General David Eby and Public Safety Minister Mike Farnworth visited the new BC Cannabis Store in the province’s Interior

Telus launches charitable foundation to help vulnerable youth

The Telus Friendly Future Foundation complements other social initiatives by the company, including Mobility for Good

Police say suspicious death of B.C. artist ruled a homicide

Patrick Zube Aylward’s body was found in a residence on a rural road outside of Seton Portage, west of Lillooet, B.C.

Temporary roads being built in areas affected by landslide in northern B.C.

Emergency Management BC news release says Disaster Financial Assistance is available to eligible residents of the Peace River Regional District who may have been affected by the landslides

B.C. tickets win big in Lotto Max draw

Jackpot carried over; B.C. tickets share Max Millions prizes

Most Read