Lance Armstrong settles US federal fraud case for $5M — lawyer

Former cycling champion Lance Armstrong on Thursday agreed to pay $5 million to settle a federal suit claiming he defrauded his sponsor, the U.S. Postal Service, by using performance-enhancing drugs, his attorney and federal officials said.

The settlement ends the long-running false claims suit brought by fellow cyclist Floyd Landis and joined by the U.S. government, which had sought $100 million in damages on behalf of the Post Office, according to a statement from Armstrong's attorney, Elliot Peters.

"No one is above the law," Acting Assistant Attorney General for the Justice Department's Civil Division Chad Readler said in a statement.

"A competitor who intentionally uses illegal performing-enhancing drugs (PEDs) not only deceives fellow competitors and fans, but also sponsors, who help make sporting competitions possible. This settlement demonstrates that those who cheat the government will be held accountable."

In his statement, Peters said, "Lance is delighted to put this behind him."

By phone, Peters told Reuters that he thinks the Postal Service realized it could not prove damages to it caused by Armstrong's behavior. He said the settlement was reached ahead of a scheduled May 7 trial date. — Reuters