Lance Armstrong sued over USPS sponsorship

Mario Tama

The U.S. government no longer sees those millions of sponsorship dollars as well-spent.

Lance Armstrong was formally sued by the Justice Department on the United States Postal Service's behalf for millions of dollars that went toward sponsoring Armstrong and his cycling team, according to a report from CNN on Tuesday.

The case alleges that Armstrong's use of banned performance-enhancing drugs, the kind he finally admitted to using in January following years and years of denials and allegations after being stripped of his seven Tour de France titles in October 2012, violated his contract with the U.S. Postal Service.

Court documents, according to CNN.com's report, state that "the USPS paid approximately $40 million to sponsor the USPS cycling team from 1998 to 2004," and that the Justice Department will seek triple the amount of money spent on sponsorships under the False Claims Act. This means they'll potentially be seeking more than $100 million in damages from Armstrong and his company, Tailwind Sports.

Facing a 60-day deadline to file the complaint against Armstrong, which ran out Tuesday night, the Justice Department made it official in the U.S. District Court for the District of Columbia.

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