Armstrong team owner could face lawsuit
Posted on February 26, 2013 at 21:59 PM EST
Armstrong team owner could face lawsuit The U.S. Justice Department says it will get behind a lawsuit filed by onetime teammate Floyd Landis alleging fraud against Armstrong and the company, Tailwind Sports, in connection with doping by members of the U.S. Postal Service-sponsored cycling team. Not yet named in the Justice Department lawsuit is San Francisco financier Thomas Weisel, founder, chairman and chief shareholder of Tailwind Sports, as well as other company principals already named in Landis' whistle-blower suit. Filed in 2010 under the federal False Claims Act, the Landis suit claims Armstrong and others defrauded a federal government agency - the Postal Service - when Armstrong used performance-enhancing substances banned by professional cycling and expressly forbidden by the sponsorship contract signed by Tailwind. At the very least, according to the Landis suit, the allegations alone "provided a sufficient basis for Weisel to take concrete steps to investigate and prevent any doping by the USPS team consistent with the team's obligations under its contract with the Postal Service." The question is, who pays up should the now-defunct Tailwind Sports be found guilty in the civil cases and ordered to pay treble damages, since, according to the Landis suit, its assets have already been distributed to its owners, "leaving it undercapitalized to satisfy its obligations to the USPS."
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