WHISTLEBLOWER LAW
The government is suing under the False Claims Act, an 1863 law that encourages private individuals to file suit when they have evidence of fraud involving government money.
When the government believes a suit has merit, it may take over the litigation. The individuals, or whistleblowers, get a portion of the proceeds if the case is successful.
Since the law was revitalized in 1986, it has been used frequently against military contractors, pharmaceutical companies and hospitals.
Armstrong is prepared to argue that claims over most of the sponsorship money are time-barred, a source close to his legal team said, speaking on condition of anonymity. The sponsorship agreement expired in 2004, and there is a six-year statute of limitations on recovery under a U.S. anti-fraud law, the source said.
The source raised two other arguments that could help Armstrong. First, the sponsorship contract did not contain specific language or promises related to doping.
Second, Armstrong was not in charge of Tailwind Sports, the racing team firm that signed the contract with the Postal Service and that existed before Armstrong joined it.
Luskin is among the most sought-after defense lawyers in Washington. He represented former White House adviser Karl Rove in a case about the leak of a CIA officer’s name.
(Additional reporting by Mark Hosenball; Editing by Howard Goller, Vicki Allen and Peter Cooney)
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