US government sues Armstrong

The United States Government is seeking a sum of over €91m in damages after filing a lawsuit accusing disgraced cyclist Lance Armstrong and his associates of defrauding the US Postal Service (USPS).

The US Department of Justice indicated in February it would join the whistleblower lawsuit brought in 2010 by Armstrong’s former team-mate Floyd Landis.

It filed a formal complaint ahead of Tuesday’s deadline, alleging the American and others violated their contract and defrauded the USPS by failing to adhere to cycling regulations while falsely denying doping allegations and receiving sponsorship money.

The lawsuit also names former team director Johan Bruyneel and team management company Tailwind Sports among the defendants.

Six of Armstrong’s seven ’wins’ on the Tour de France came while his team were sponsored by the USPS.

Armstrong was stripped of his seven Tour de France titles and handed a life ban from cycling last year after the United States Anti-Doping Agency produced a damning portfolio of evidence that he had doped throughout his career.

The 41-year-old later confessed he had cheated during an interview with television host Oprah Winfrey.

The complaint read: “Because the defendants’ misconduct undermined the value of the sponsorship to the USPS, the United States suffered damage in that it did not receive the value of the services for which it bargained.

“Moreover, because they knowingly provided services that materially failed to comply with the USPS sponsorship agreement, the defendants were unjustly enriched to the extent of the payments and other benefits they received from the USPS, either directly or indirectly.”

The complaint states the USPS paid $40m (around €30m) to sponsor the team between 1998 and 2004, it also asserts Armstrong’s salary during this period, excluding bonuses, was $17.9m (€13.7m).

The US Government is suing Armstrong under the False Claims Act, and wants to be reimbursed for treble the loss of sponsorship funds, plus penalties.

Having made the original allegations, Landis would potentially receive a considerable share of any money recovered.

Armstrong’s attorney Elliot Peters responded in a statement, saying: “The US Postal Service benefited tremendously from its sponsorship of the cycling team.

“Its own studies repeatedly and conclusively prove this. The USPS was never the victim of fraud.”Lance Armstrong rode his heart out for the USPS team, and gave the brand tremendous exposure during the sponsorship years.“