U.S. government rejects Armstrong's $5 million offer in whistleblower case

With news that the United States Justice Department is considering joining a federal whistleblower lawsuit reportedly filed by Floyd Landis, Lance Armstrong is said to have offered to pay compensation in a bid to stem the potential financial fallout that could be coming his way.

CBS News reports that Armstrong has offered to pay the U.S Government more than $5 million dollars and also cooperate as a witness in the investigation. The channel claims that its sources say that the government in turn rejected "both offers as inadequate."

The suit is aimed at recouping the sponsorship funds provided by the US Postal Service, which supported the team from 1996-2004, in light of the US Anti-Doping Agency's lifetime ban of Lance Armstrong for doping.

If the suit is successful, Landis could, under the Federal False Claims Act, personally claim up to 30% of the funds that the government wins.

The US Postal Service contract in 2001 was renewed to the tune of $32 million, according to documents available in the US Anti-Doping Agency’s reasoned decision. The total settlement to the government could, by law, be two to three times that amount.

 

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