By Brigette Honaker  |  May 9, 2018

Category: Consumer News

professional cyclists racingFormer professional cyclist Lance Armstrong has agreed to pay $5 million to settle the False Claims Act lawsuit against him.

On April 19, disgraced cyclist Lance Armstrong stated that he agreed to pay $5 million to settle a False Claims Act lawsuit filed by former teammate Floyd Landis and the U.S. Postal Service. The False Claims Act lawsuit alleged that he had defrauded the government by accepting millions of dollars in sponsorship while lying about doping.

“I am glad to resolve this case and move forward with my life,” Armstrong said in a statement, according to Law360. “I’m looking forward to devoting myself to the many great things in my life — my five kids, my wife, my podcast, several exciting writing and film projects, my work as a cancer survivor, and my passion for sports and competition. There is a lot to look forward to.”

Before a settlement was reached, the lawsuit was set to go to trial on May 7 before U.S. District Judge Christopher R. Cooper. Landis and the U.S. government sought over $100 million in damages under the False Claims Act.

The $5 million settlement will end litigation dating back to 2010 when the lawsuit was first filed. Armstrong’s former teammate Landis filed a complaint under the False Claims Act in 2010 to assist the government in their legal battle against the cyclist. The U.S. government sought to recover the $40 million the U.S. Postal Service had paid in sponsorship to Armstrong and his cycling team between 1998 and 2004.

Before settling the case, Armstrong had argued that the government didn’t sustain any harm by sponsoring him and his team. He brought forward evidence that the U.S. Postal Service allegedly made at least $163.7 million from the sponsorship.

In 1997, Armstrong joined the Tailwind cycling team which was sponsored by the U.S. Postal Service and the Discovery Channel from 1998 to 2004. In 1998, he officially returned to cycling after being diagnosed with and treated for testicular cancer.

Following his recovery, he established the Lance Armstrong Foundation, now the Livestrong Foundation, to assist other cancer survivors. He then won the Tour de France seven times straight from 1999 to 2005. However, when all of his titles from 1998 onward were revoked by the U.S. Anti-Doping Agency, Armstrong admitted to taking enhancing drugs during his career. Armstrong’s doping scheme has been dubbed “the biggest scandal cycling has ever seen”.

The False Claims Act was enacted in 1863 during the Civil War in an attempt to halt military fraud. The False Claims Act allows citizens, legally known as “relators,” to file complaints on behalf of the government if they believe that fraud is taking place.

Often called “whistleblowers,” relators are usually rewarded 15 to 20 percent of the damages recovered in a False Claims Act lawsuit. Most complaints filed under the False Claims Act involve health care, the military, or other government spending programs.

The Lance Armstrong False Claims Act Lawsuit is Case No. 1:10-cv-00976 in the U.S. District Court for the District of Columbia.

In general, whistleblower and qui tam lawsuits are filed individually by each plaintiff and are not class actions. Whistleblowers can only join this investigation if they are reporting fraud against the government, meaning that the government must be the victim, and that the alleged fraud should be a substantial loss of money.

Do YOU have a legal claim? Fill out the form on this page now for a free, immediate, and confidential case evaluation. The attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual qui tam lawsuit or whistleblower class action lawsuit is best for you. Hurry — statutes of limitations may apply.

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Join a Free Whistleblower, Qui Tam Lawsuit Investigation

If you believe that you have witnessed fraud committed against the government, you may have a legal claim. Whistleblowers can only join this investigation if they are reporting fraud against the government, meaning that the government must be the victim, and that the alleged fraud should be a substantial loss of money.

See if you qualify to pursue compensation and join a whistleblower lawsuit investigation by submitting your information for a free case evaluation.

An attorney will contact you if you qualify to discuss the details of your potential case.

Please Note: If you want to participate in this investigation, it is imperative that you reply to the law firm if they call or email you. Failing to do so may result in you not getting signed up as a client, if you qualify, or getting you dropped as a client.

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