Lance Armstrong Whistleblower Case Joined by Department of Justice By Tod Aronovitz | 02/26/13 | 0 Comment

The Justice Department recently joined the Lance Armstrong whistleblower lawsuit initiated by Floyd Landis, which alleges that the United States Postal Service (USPS) sponsored racing team led by Armstrong knowingly caused the USPS agreements to be violated by using prohibited drugs.

Lance Armstrong, former cyclist and seven time winner of the Tour de France, was sued by Floyd Landis, Armstrong’s former teammate, in 2010 under the False Claims Act. Landis, on behalf of the USPS, alleged that Armstrong and his teammates improperly accepted USPS sponsorship funds because they did not comply with performance guidelines.

The rules of cycling prohibit the use of certain performance enhancing drugs, which Armstrong recently admitted to using in his television interview with Oprah Winfrey.

The lawsuit hinges in part on whether the USPS derived a benefit from their contract with Armstrong and his entire cycling team, even though they are now engulfed in the “doping” scandal.

The Department of Justice is expected to file a formal complaint within 60 days.

About the False Claims Act

The False Claims Act allows any citizen to bring fraud charges against a party that receives federal funds. The party choosing to act as a whistleblower may receive an award of up to one third of any money recovered by the government as a result of the allegations.  Furthermore, the Justice Department may, at their own discretion, join the lawsuit to increase the chances of winning.

Under the False Claims Act, Armstrong could be liable for three times as much as he initially accepted. This translates into a potential $90 million exposure associated with the $30 million sponsorship.

ARONOVITZ LAW: Miami Whistleblower / Qui Tam Law Firm

The Miami, Florida law firm of ARONOVITZ LAW routinely works with Florida whistleblowers to document fraud against the government. Click on the link to read more about our Miami Whistleblower / Qui Tam law firm services.

Contact Miami whistleblower attorney Tod Aronovitz for a confidential discussion of your potential Florida whistleblower or qui tam case.