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Armstrong seeks agreements with Justice Dept., USADA

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Armstrong’s negotiating window with the Justice Department is much shorter. Unless both parties agree to an extension, the Justice Department must decide by Thursday whether to join a whistleblower suit filed by Floyd Landis, another disgraced cyclist who was stripped of his 2006 Tour de France title.

The suit asserts that Armstrong defrauded the federal government by doping while his team received roughly $35 million in sponsorship revenue from the U.S. Postal Service. Its contract made clear that riders were to compete “clean.” In whistleblower cases, damages are typically tripled.

The suit would be strengthened considerably if the Justice Department gets involved, because Landis would have to bear the legal costs going forward, and it’s not clear what Armstrong can offer in terms of restitution or information.

He reportedly has offered to repay a portion of the sponsorship dollars, but his Washington-based lawyer, Robert D. Luskin, insisted Tuesday that Armstrong has not offered to incriminate any of his associates as part of a settlement, although talks for a mutually satisfactory conclusion continue.

“There is no truth to the suggestion that Lance has offered to minimize his own liability by implicating others,” Luskin said.

While much has been made about the legal liability Armstrong has exposed himself to by confessing his doping to Winfrey, it may not figure prominently in the whistleblower suit, in which the crux of his defense won’t hinge on defeating doping allegations. Rather, it’s expected to be two-fold: That the U.S. Postal Service’s contract was with Tailwind Sports, which owned the team, rather than Armstrong himself; and that the U.S. Postal Service benefited handsomely from the relationship rather than being defrauded by it, earning millions of dollars in exposure through its association.

“We are engaged in constructive discussions about reaching a fair resolution,” Luskin said. “We hope they’ll succeed.”

Marty L. Steinberg, among the lawyers who represented Mark McGwire during Major League Baseball’s steroids probe, said he imagined Armstrong’s decision to make such a high-profile public confession followed a careful legal analysis of how it would affect his criminal and civil liability going forward.

“People can contest evidence forever, but it’s very difficult to contest your own admission,” said Steinberg, a partner with Miami-based Bilzin Sumberg. “I think the American public is very forgiving. The problem is, the American public can’t give you immunity.”

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