There seems to be no escape to having done business with cheater Lance Armstrong.
USA TODAY Sports has reported that the names two longtime associates of the disgraced cyclist were kept on as co-defendants in the $100 million fraud case filed by former Armstrong teammate Floyd Landis on behalf of the federal government.
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Bill Stapleton, Armstrong's longtime agent, and Barton Knaggs, Armstrong's longtime business partner had an agreement in place to pay a $600,000 sum to have their names dropped from the case against Armstrong.
Landis originally sued Armstrong, Stapleton and Knaggs in 2010 under the False Claims act, USA TODAY Sports reported. The U.S. Government joined in the lawsuit in 2013, claiming the U.S.Postal Office, which sponsored Armstrong's team, would not have paid more than $30 million in sponsorship funds if it knew he was doping.
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The government, which mcclatchydc.com identified as the Justice Department, did not list Stapleton or Knaggs in its parallel suit against Armstrong. But U.S. District Judge Christopher R. Cooper ruled that the government still had veto power over any proposed settlement in the joint case.
The government did not have to provide a reason for vetoing the settlement. Even Cooper hinted that the government's power in this case seemed unfair but stated the law was clear on the matter.
"Fairly or not, withholding of consent requires no explanation," Cooper wrote in a decision Thursday, according to mcclatchydc.com. "While it might seem counterintuitive that the government can effectively veto a settlement of claims it has chosen not to join, the False Claims Act itself and the majority of circuits that have addressed the question say otherwise."
In December, Stapleton and Knaggs entered into an agreement to pay the federal government $500,000 and the law office of Landis' attorney $100,000.
The government isn't satisfied with the level of cooperation Stapleton and Knaggs have provided, USA TODAY Sports reported.
"Although the government has remained silent before this court, in discussions with (Stapleton's and Knaggs') counsel, the government has demanded that (they) agree to a nebulous 'cooperation' requirement, which permits the government to unwind the settlement if it does not deem their 'cooperation' 'helpful,'" wrote attorneys Marc Harris and John Pierce. "The government also seeks to compel Mr. Stapleton to waive spousal privilege - conditioning its consent to dismissal upon his agreement to do so. When (Stapleton and Knaggs) refused the government's demands, the government withheld its consent."
Under the False Claims Act, Armstrong, Stapleton and Knaggs could pay up to $100 million in damages if the Landis and the government win the case.
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