Qui Tam Whistleblower Receives $1.1 Million Reward in FCA Settlement with Lance Armstrong

On April 19, 2018, the Department of Justice (“DOJ”) and Lance Armstrong, a former professional cyclist, entered into a settlement agreement just weeks before trial was scheduled to begin. The settlement resolved allegations under the False Claims Act (“FCA”) that Armstrong and his team regularly used performance-enhancing drugs (“PEDs”) in violation of the sponsorship agreement Armstrong’s cycling team had with the United States Postal Service (“USPS”). As part of the settlement agreement, Armstrong agreed to pay the United States $5 million dollars.

The qui tam lawsuit alleged that by lying to USPS about his use of PEDs, Armstrong defrauded the government. The sponsorship agreement between Armstrong’s team and USPS required the team to follow the rules of cycling’s governing bodies, including rules prohibiting the use of certain PEDs. The suit also alleged that Armstrong made numerous false statements to USPS management in order to induce renewal of and increase fees under the sponsorship. Commenting on the settlement, Jessie K. Liu, U.S. Attorney for the District of Columbia, stated that the DOJ “will continue to work with … federal partners to protect taxpayer dollars and to ensure that those who do business with the federal government fulfill their contractual obligations.” 

The lawsuit was initiated in 2010 by a qui tam whistleblower, Armstrong’s former USPS teammate Floyd Landis, and the government intervened in 2013. Landis’ complaint was filed under the FCA’s qui tam provisions, which incentivize whistleblowers to file on behalf of the government by sharing in 15 to 25 percent of the action’s proceeds. For his contributions to this case, Landis will receive a whistleblower reward of $1,100,000, or 22% of the settlement.

• DOJ Press Release, United States ex rel. Landis v. Tailwind Sports Corporation, et al., No. 10-cv-976 (D.D.C.)
• Award to FCA Qui Tam Whistleblower, 31 U.S.C. § 3730(d)
• Resources for False Claims Act / Qui Tam Whistleblowers