The government joined a civil suit against Armstrong, stripped of his Tour de France titles and banned for life from cycling in 2012 after accusations he had cheated for years. In January, he said the accusations were true in an interview with television host Oprah Winfrey.
A battle with the U.S. government over civil fraud charges threatens to sap what remains of the once-revered athlete’s reputation, and hurt his wallet.
Armstrong and his teammates from Tailwind Sports wore the logo of the Postal Service during their record-breaking wins.
“This lawsuit is designed to help the Postal Service recoup the tens of millions of dollars it paid out to the Tailwind cycling team based on years of broken promises,” Ronald Machen, the U.S. attorney for Washington, said in a statement.
The sponsorship money totaled more than $30 million, the government said.Armstrong plans to contest the suit because the Postal Service was not actually damaged, his lawyer, Robert Luskin, said.
“The Postal Service’s own studies show that the service benefited tremendously from its sponsorship – benefits totaling more than $100 million,” the lawyer said in a statement.
Prosecutors have said they do not expect to charge him with a crime.
Former Armstrong teammate Floyd Landis filed a sealed whistleblower suit against Armstrong in 2010. The decision by the government to join the suit triggered its unsealing.
Lawyers for Landis did not respond to requests for comment.