Lance Armstrong facing US government lawsuit

DISGRACED cyclist Lance Armstrong is being sued by the US government over his admitted use of performance-enhancing drugs while sponsored by the US Postal Service.

Armstrong admitted to Oprah Winfrey that he had used banned drugs throughout his career. Picture: Getty

• Lance Armstrong faces Justice Department suit over US Postal Service sponsorship

• Armstrong was paid $17 million by USPS between 1998 and 2004

• Armstrong admitted using performance-enhancing drugs throughout his career

The Justice Department laid out its case in a lawsuit against Lance Armstrong on Tuesday, saying the cyclist violated his contract with the U.S. Postal Service and was “unjustly enriched” while cheating to win the Tour de France.

The government had previously announced it would join the whistle-blower lawsuit brought by former Armstrong teammate Floyd Landis. Tuesday was the deadline to file its formal complaint.

The Postal Service paid about $40 million to be the title sponsor of Armstrong’s teams for six of his seven Tour de France victories. The filing in U.S. district court in Washington, D.C., says the USPS paid Armstrong $17 million form 1998-2004.

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

The financial costs for Armstrong and Bruyneel could be high. The government said it would seek triple damages assessed by the jury.

“Defendants were unjustly enriched to the extent of the payments and other benefits they received from the USPS, either directly or indirectly,” the complaint said.

Armstrong, who in January admitted using performance-enhancing drugs after years of denials, has argued that the Postal Service’s endorsement of his team earned the government agency far more than it paid him.

Armstrong attorney Elliot Peters called the government’s complaint “opportunistic, and insincere.”

“The U.S. 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,” Peters said.

The government must prove not only that the Postal Service was defrauded, but that it was damaged somehow.

Previous studies done for the Postal Service concluded the agency reaped at least $139 million in worldwide brand exposure in four years - $35 million to $40 million for sponsoring the Armstrong team in 2001; $38 million to $42 million in 2002; $31 million in 2003; and $34.6 million in 2004.

Armstrong is also fighting a bid from The Sunday Times to recoup half a million dollars paid to settle a libel case.