Lance Armstrong Settles Fraud Case for $5 Million

As we have previously reported, Lance Armstrong has been battling a dispute with former teammate, Floyd Landis, and the United States Postal Service (USPS) over his illicit use of performance-enhancing drugs (PEDs), which has apparently cost the government millions in undue sponsorship costs. On April 29, 2018, Armstrong agreed to settle the issue for $5 million, although the USPS initially sought close to $100 million. Of that $5 million, Landis is expected to receive $1.65 million. The stir initially began in 2006, when Armstrong…
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Fight Between Armstrong and USPS Reaches Pivotal Junction

The legal battle between Lance Armstrong and the United States Postal Service (USPS) has reached a pivotal point, with a report saying a ruling is expected soon on whether the case will proceed to trial or be thrown out at the summary judgment stage. In its claim, the government claims that USPS paid $32.3 million to sponsor Armstrong’s team, and also paid Armstrong $17 million while spending almost $40 million appearing as the main title sponsor on several of Armstrong’s teams. The government is seeking…
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Lance Armstrong Lashes Back at Government

Lance Armstrong is disputing a demand that he pay back more than $32 million the government alleges he took from the U.S. Postal Service (USPS). The government claims the contract between Armstrong and USPS was predicated on a “contractual promise to play fair and abide by the rules — including the rules against doping,” according to U.S. attorney Ronald Machen Jr., and that Armstrong broke that promise by using performance enhancing drugs. Armstrong fought back by saying the government failed to show he had a
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Discovery Disputes Continue in Lance Armstrong, DOJ Lawsuit

In June 2010, Floyd Landis — retired professional road racing cyclist — filed a lawsuit under the federal False Claims Act, alleging that the doping at the United States Postal Service (USPS) professional cycling team amounted to defrauding the federal government, which was the team’s primary sponsor. Landis named a number of defendants, including seven time Tour de France winner Lance Armstrong. In 2013, the federal government, represented by the United States Department of Justice, joined the lawsuit. The False Claims Act is designed to…
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Privileged Communications: Lance Armstrong Opposes Requests for Williams & Connolly LLP Documents

In a False Claims Act lawsuit filed by former professional cyclist Floyd Landis, he recently made a motion requesting the production of communications between his former teammate Lance Armstrong, law firm Williams & Connolly LLP, and Capital Sports and Entertainment Holdings Inc. The lawsuit accuses Armstrong and others of violating a sponsorship agreement with the United States Postal Service by using performance-enhancing drugs. The agreement was worth $40 million. Attorney-client privilege may be overcome by proof that the communications at issue were made in furtherance…
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Lance Armstrong Owes $10 million According to Arbitrators

Last week, Lance Armstrong lost an arbitration battle in the amount of $10 million over a fraud dispute with a Dallas based promotions company. Armstrong and former team owner Tailwind Sports Corp. were on the losing end of a 2-1 arbitration decision that ruled in favor of promotions company SCA Promotions.  SCA Promotions had previously paid Armstrong bonuses for victories in the Tour de France, but then took legal action to recover them once doping allegations arose.  The parties originally agreed in 2005 to a…
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Armstrong Can’t Escape DOJ Fraud Suit

On Thursday June 19, 2014, Judge Robert Wilkins of the United States Court of Appeals for the District of Columbia ruled on Lance Armstrong’s motion to dismiss the fraud case he is facing against the US Department of Justice. In an 81 page ruling, Judge Wilkins denied Armstrong’s request without prejudice. Armstrong argued that the case should be dismissed on two grounds. First, he argued the six-year statute of limitations on bringing the suit had run. He also argued the government knew he was using…
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Insurers Seek to Re-Open Arbitration Claim against Armstrong

On February 21, attorneys for the now disgraced cyclist Lance Armstrong found themselves back in court.  The embattled athlete’s legal team is attempting to fight a motion to re-open a 2006 arbitration decision which forced the Dallas-based sports insurance company SCA Promotions to pay Armstrong $12 million dollars in performance bonuses.  As Armstrong has since come out and publicly admitted to doping, SCA believes that it should receive reimbursement for the monies it paid to Armstrong for winning three of Armstrong’s seven Tour de France…
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Lance Armstrong Settles and Avoids Questioning Under Oath

Just one day before Lance Armstrong was to be questioned under oath about his doping practices, he settled a lawsuit brought earlier this year and avoided his deposition. In February 2013, Acceptance Insurance Company sued Armstrong after he admitted to doping during an interview with Oprah Winfrey.  The company, like many others, wants the money it paid to Armstrong back.  In Acceptance’s case, the company sought the return of $3 million in bonuses it paid for wins from 1999 to 2001. On November 20, Armstrong…
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Armstrong Faces Uphill Battle Against US Justice Department’s Lawsuit

In the wake of Lance Armstrong’s doping confession, the tide is still not settled. On Monday, September 23, 2013, the US Department of Justice, on behalf of the US Postal Service, urged a federal judge to allow the government’s fraud lawsuit against Armstrong to continue. In January 2013, the Toure de France “winner” confessed to using performing enhancing drugs in a television interview with Oprah Winfrey.  The confession was “arguably the greatest fraud in the history of professional sports,” according to a government filing. In…
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