A district court judge in Texas refused to grant a settlement in a court case between two former associates of Lance Armstrong and former U.S. cyclist Floyd Landis, according to the New York Daily News.
Judge Christopher Cooper denied the settlement, which would have released two defendants Bill Stapleton and Bart Knaggs from litigation in exchange for $600,000, on grounds that the U.S. Justice Department first needed to approve the settlement.
The Department is seeking to retrieve more than $100 million from Stapleton and Knaggs Austin, Tex.-based Capital Sports and Entertainment as part of an ongoing Federal investigation.
Landis filed a federal whistle-blower lawsuit against Armstrong and other U.S. cycling officials in 2010. The Justice Department did not charge Armstrong with crimes in February of 2013, but instead joined Landis' lawsuit as a co-plaintiff. At that time, the government claimed Armstrong’s cycling teams illegally appropriated at least $40 million taxpayer dollars.
At issue in Judge Cooper's ruling is Stapleton's willingness to waive spousal privilege, the Daily News report said.
Capital Sports is a management company that was involved in running the day-to-day operation of Armstrong's cycling teams.
- Will Green