Lance Armstrong Faces the False Claims Act

Will DoJ join a False Claims Act lawsuit case filed against Tour de France bicyclist Lance Armstrong and his backers and managers? The lawsuit, filed by former teammate Floyd Landis, alleges that Armstrong and his team lied to the U.S. Postal Service (USPS) when they accepted money and signed a promotional contract saying the team would not use illegal performance-enhancing drugs and would take “immediate action” against individuals who did.

Armstrong and his codefendants have reportedly offered to pay the federal government more than $5 million to compensate the U.S. Postal Service for violating the terms of the USPS promotional contract, but Justice Department officials have rejected that offer as inadequate.   The USPS is said to want to move ahead with an FCA case, but the decision has been put in the hands of Attorney General Eric Holder.  In the interim, settlement negotiations may be ongoing; it remains unclear.

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