Armstrong settles lawsuit for $6.9m
Lance Armstrong has reached a US$5 million (NZ$6.9m) settlement with the US government in a whistleblower lawsuit that could have sought US$100m in damages from the disgraced cyclist.
The deal announced yesterday came as the two sides prepared for a trial that was scheduled to start May 7 in Washington. Armstrong’s former US 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.
Seven-time Tour de France winner Armstrong had already retired, but the confession shattered the legacy of one of the most popular sports figures in the world.
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.
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 US$20m 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.
Armstrong had built a worldwide 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 US$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 cheating was finally uncovered in 2012 when the US Anti-Doping Agency, armed with sworn testimony from Landis and other former teammates, moved to strip Armstrong of his titles.
‘‘I am glad to resolve this case and move forward with my life,’' Armstrong said.