The disgraced cyclist will pay $5 million to settle claims that he defrauded the US government when he cheated while riding under the Postal Service banner. His former teammate will pocket up to 25 percent of the amount.
The lawsuit claimed that Armstrong, who was stripped of his record seven Tour de France victories after admitting he used performance-enhancing drugs, committed fraud against the US government when he cheated while the Postal Service spent millions sponsoring his team.
The settlement on Thursday came just weeks before the start of the trial on May 7 in Washington.
"I am glad to resolve this case and move forward with my life," Armstrong said in a statement.
"While I believe that their lawsuit against me was meritless and unfair, and while I am spending a lot of money to resolve it, I have since 2013 tried to take full responsibility for my mistakes and inappropriate conduct, and make amends wherever possible," he said.
"I rode my heart out for the Postal cycling team, and was always especially proud to wear the red, white and blue eagle on my chest when competing in the Tour de France. Those memories are very real and mean a lot to me," Armstrong said.
Star athletes accused of doping
A look at some of the most famous athletes whose careers were marred by doping allegations over the last three decades.
Image: Reuters
Ben Johnson, Carl Lewis
Canadian sprinter Ben Johnson (center) was stripped of his 100 meter gold medal at the 1988 Seoul Olympics when he tested positive for stanozolol. He admitted having used steroids when he ran his 1987 world record, so that was rescinded too. His main rival, US athlete Carl Lewis (right), tested positive in1988, but successfully blamed the traces of banned stimulants on cold medication.
Image: picture-alliance/Sven Simon
Jailed for lying about doping
US track and field world champion and Olympic gold medalist Marion Jones forfeited all prizes dating back to 2000, admitting in 2007 that she’d been doping that far back. She confessed to lying about it to a grand jury investigating performance-enhancer creations by the Bay Area Laboratory Co-operative (BALCO), which supplied more than 20 top athletes, and was sentenced to six months in jail.
Image: picture-alliance/dpa
Katrin Krabbe
The German sprint star and world champion in 1991 for the 100 and 200 meter distance tested positive for clenbuterol in 1995. A comeback attempt failed.
Image: picture-alliance/dpa
Suspicious toothpaste
Dieter Baumann, German 5000-meter Olympics champion of 1992, later tested positive for Nandrolone and was banned for two years in 1999, causing him to miss the 2000 Sydney Olympics. He argued that someone had contaminated his toothpaste. He came back in 2002, at the age of 37, to win silver over 10,000 meters at the European Championships in Munich.
Image: picture-alliance/dpa
Running away to avoid testing
Ekaterini Thanou and her training partner Konstantinos Kenteris failed to attend a drugs test on the eve of the Athens 2004 Summer Olympics. Later that day they were hospitalized, claiming they’d had a motorcycle accident. They withdrew from the Games, and investigators ruled the accident had been staged and they were criminally charged with making false statements to authorities.
Image: picture-alliance/dpa
Professional cycling's most notorious
The most high-profile case in professional cycling: The US Anti-Doping Agency in 2012 found Lance Armstrong guilty of using performance enhancing drugs, stripped the seven-time Tour de France winner of his titles and banned him for life. In January 2013, Armstrong told US television personality, Oprah Winfrey, how he lied without detection for years between 1998 and 2004.
Image: picture-alliance/dpa
The risk of drug abuse
Argentine football legend Diego Maradona tested positive for Ephedrine at the soccer World Cup in the US in 1994 and was excluded from the tournament. Three years earlier he had been found to have taken cocaine.
Image: imago sportfotodienst
Still claiming innocence
Claudia Pechstein is the most successful Olympic speed skater, ever. In 2009, she was accused of blood doping and banned from all competitions for two years. She claimed an inherited condition was the reason for irregular levels of reticulocytes but failed to win a long legal battle. She returned to competition in 2011, winning bronze in the 5000 meter event at that year’s World Championships.
Image: picture alliance/AP Photo
Russian athletes notorious for doping
Russia’s Svetlana Krivelyova won shot put gold at the 1992 Olympics and the World Championship in 2003. At the 2004 World Indoor Championships she was awarded gold after the winner was stripped of her title for failing a drugs test. In Athens, 2004, she won bronze only after the winner was disqualified for doping. A re-test then found drugs in Krivelyova’s, and the medal was rescinded.
Image: imago/Chai v.d. Laage
Gert Thys won his case
South African long-distance runner Gert Thys entered World Championships and Olympic Games. He won the 2006 Seoul International Marathon but was disqualified after testing positive for the steroid Norandrosterone. Thys contested the ban, pointing to laboratory errors: the same technician had analyzed both his samples, a breach of testing rules. In 2012 he was exonerated.
Image: picture-alliance/dpa
Most recent scandal
Jamaican former 100-meter world record holder Asafa Powell, his teammate, three-time Olympic medalist Sherone Simpson, US American sprinters Tyson Gay and Veronica Campbell-Brown all failed doping tests this summer. Powell was one of the world’s most-tested athletes in the run-up to the London 2012 Summer Olympics. He is exploring legal options.
Image: Reuters
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'No one is above the law'
The lawsuit was originally filed in 2010 by Armstrong's former Postal Service teammate Floyd Landis, who is eligible for up to 25 percent of the settlement.
The US government became a party in 2013 after Armstrong's televised confession to using steroids and other performance-enhancing drugs and methods.
"No one is above the law," Acting Assistant Attorney General for the Justice Department's Civil Division Chad Readler said in a statement.
"A competitor who intentionally uses illegal performing-enhancing drugs (PEDs) not only deceives fellow competitors and fans, but also sponsors who help make sporting competitions possible. This settlement demonstrates that those who cheat the government will be held accountable."
His battle with cancer and his sporting achievements turned Armstrong into an international celebrity and brought global attention to his Lance Armstrong Foundation cancer charity.
The foundation removed Armstrong from its board and renamed itself Livestrong after the cyclist's shocking confession.
Once Armstrong's cheating was uncovered, Landis, himself a former doping cheat who was stripped of his 2006 Tour de France title, sued Armstrong for cheating the Postal Service that spent millions sponsoring his team.
Armstrong had claimed he didn't owe the Postal Service anything because the agency made far more off the sponsorship than it paid.
Doping: East Germany, A-Rod and the Tour de France
German broadcaster ARD and Britain's Sunday Times report that one-third of the medals in recent track-and-field competitions have gone to athletes who doped to get ahead. If it's true, the jocks are in storied company.
Image: Reuters
Thomas Hicks
In the first known doping incident, coaches pumped a dangerous mix of strychnine and pure egg whites into Thomas Hicks before his marathon at the 1904 St. Louis Olympics. In the absence of guidelines at the time, he was declared the winner of the race - even after collapsing at the finishing line and hallucinating for hours. The boost may nearly have cost Hicks his life.
Image: picture-alliance/akg-images
Diego Maradona
Argentine soccer ace Diego Maradona has battled with substance abuse on two separate fronts: During the 1980s, he developed a serious cocaine habit that would follow him throughout his life and lead to some serious health scares, but he also tested positively for ephedrine in 1994, provoking a FIFA ban and the end of his prolific career as a midfielder.
Image: picture alliance/AFP
Andreas/Heidi Krieger
Born as Heidi, Krieger was a female shot putter for East Germany at the height of the Cold War. Communist officials fed Krieger with staggering amounts of steroids, altering her appearance. Krieger began to publicly identify as transgender and later opted to have gender reassignment surgery, becoming Andreas.
Image: Montage: picture-alliance/dpa/DW
Ben Johnson
A successful Canadian sprinter with a stellar track record, Johnson's doping scandal overshadowed much of the 1988 Seoul Olympics. When blood samples tested positive for stanozolol, he was disqualified three days after winning the gold medal in the 100-meter sprint. Though Johnson admitted to doping, he maintained that he had never taken stanolozol - implying that he might have been set up.
Image: picture-alliance/Sven Simon
Marion Jones
Marion Jones was sentenced to six months in prison in 2008 after lying to US federal investigators about her part in the Bay Area Laboratory Co-Operative (BALCO) doping scandal. Jones, the most prominent athlete linked to the scandal, had denied all allegations against her but later tested positive for tetrahydrogestrinone supplied by BALCO, leading to the end of her career.
Image: picture-alliance/AP Photo/A. Butler
Alex Rodriguez
Alex Rodriguez is one of the most successful baseball players of all time, producing numbers rarely seen since the days of fellow Yankees Joe DiMaggio in the 1940s and Babe Ruth in the '20s. Rodriguez was suspended for the 2014 season after admitting to steroid abuse. He has made a comeback and hopes to redeem himself by completing 700 home runs before he retires from the sport. He has 678.
Image: Reuters
Jan Ullrich
Ullrich was German cycling's poster child. He won the 1997 Tour de France and two medals at the 2000 Sydney Olympics and continued to compete internationally for several years before doping allegations first arose in 2006. He managed to dodge these until 2012, when a Court of Arbitration for Sport ruling found that he had used steroids for many years.
Image: AP
Lance Armstrong
A number of investigations between 2010 and 2012 led to Lance Armstrong's monumental downfall in January 2013. Although allegations had been levelled at him repeatedly, Armstrong managed to hide his steroid abuse for years. Having conquered testicular cancer, Armstrong was once a national hero who even hinted at a future career in politics in his native Texas. That's now history.