The Daily Item, Sunbury, PA

News

February 23, 2013

U.S. to join lawsuit against Armstrong



By Annys Shin

The Washington Post


WASHINGTON — The Justice Department has decided to join a whistleblower lawsuit against disgraced cyclist Lance Armstrong, a lawyer for Armstrong, Robert Luskin, said Friday.

The move, which could happen as early as Friday, increases the odds Armstrong may have to forfeit tens of millions of dollars paid out by team sponsor, the U.S. Postal Service.

The lawsuit, filed in 2010 by former teammate Floyd Landis on behalf of the Postal Service, alleges Armstrong defrauded the government by using taxpayer dollars to buy performance enhancing drugs used to win seven Tour de France titles between 1999 and 2005. Armstrong has admitted to doping and that he bullied his teammates into using banned substances as well.

Until now, his admission has not resulted in serious financial consequences. He is estimated to be worth $125 million.

The Landis lawsuit, filed under the federal False Claims Act, poses a bigger threat to Armstrong’s wealth because it triples financial damages. The case has been kept under seal while the Justice Department decided whether to join it.

The government is choosing to intervene in the lawsuit after settlement negotiations with Armstrong stalled over the extent of damages the postal service suffered as a result of the alleged fraud, an Armstrong spokesman said.

Armstrong’s camp has argued that the postal service sustained little or no damage because it got a 300 percent return for its sponsorship of the pro cycling team. The postal service spent at least $31 million over four years to support the team.

“Lance and his representatives worked constructively over these last weeks with federal lawyers to resolve this case fairly, but those talks failed because we disagree about whether the Postal Service was damaged,” according to a statement issued by his spokesman, Mark Fabiani. “The Postal Service’s own studies show that the it reaped big rewards from its sponsorship -- with benefits totaling more than $100 million.”

Text Only
News
  • 28-mile cross walk steps off in Northumberland

    SUNBURY — Two “cross walks” this morning, including a 28-mile trek from Northumberland to Beaver Springs, are among the highlights of Easter activities and services in the Valley.

    April 18, 2014

  • rsstrike18a.jpg Picketing begins at 4 Danville schools

    [LAST UPDATED: 2:38 A.M., 4/18/14]

    DANVILLE — It started like any other school day during the year, with teachers up early and arriving at school at 7:30 in the morning.

    April 18, 2014 1 Photo

  • Line Mountain board, teachers to talk Tuesday

    MANDATA — Line Mountain school board President Troy Laudenslager is far more optimistic this week than he has been as the board and the Line Mountain Education Association head into their first contract negotiation session in three months.

    April 18, 2014

  • Good Morning Central Susquehanna Valley

    Today is Good Friday, April 18, the 108th day of 2014. There are 257 days left in the year. On April 18, 1934, the first laundromat (called a “Washateria”) was opened by John F. Cantrell in Fort Worth, Texas; four electric washing machines were rented to members of the public on an hourly basis.

    April 18, 2014

  • Injured bicyclist can't believe car didn't stop

    SUNBURY — Brandon Reigle has one question for the driver and passengers who left him in the middle of the road after hitting the bicyclist with a car Wednesday: Why?

    April 17, 2014

  • Petitions target 'toxic few' on Midd-West board

    MIDDLEBURG — More than 400 names have been gathered on two petitions to remove a pair of Midd-West school directors after some members of the public claimed the district has been in disarray for quite some time.

    April 17, 2014

  • crash18.jpg Snyder County collision injures driver, kills two horses

    PORT TREVORTON — A car struck two horses on a rural road in Snyder County Thursday afternoon, injuring the driver and resulting in the death of the horses.

    April 17, 2014 1 Photo

  • Strike17.jpg Danville teachers hit picket lines

    DANVILLE - It started like any other school day during the year, with teachers up early and arriving at school at 7:30 in the morning.

    April 17, 2014 1 Photo

  • Snook suspension now a mystery

    MIDDLEBURG — Acting Midd-West Superintendent Daphne Snook is confused about what the school board is alleging she did that led to her suspension without pay, saying she hasn’t received anything in writing. “Nothing I have been told by the board in any way makes me believe that I violated district policy or the law,” Snook said by email Wednesday.

    April 17, 2014

  • Danville teacher strike starts today

    DANVILLE — Nearly four hours of negotiations could not prevent the first teacher strike at Danville in decades.

    April 17, 2014

The Daily Marquee
Poll

Are you among those who will be completing and mailing your tax forms today?

Yes
No - Already Filed
     View Results
Photo Galleries
The Valley

Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.