On Monday, a USA federal judge ruled that the government's US$100 million false-claims lawsuit against Lance Armstrong would proceed to trial.
U.S. District Judge Christopher Cooper refused Armstrong's motion to dismiss, because of the difficulty of quantifying the damages the Postal Service may have suffered.
The trial is likely to be heard in front of a jury.
The Justice Department alleges in the lawsuit, made under the False Claims Act, that Armstrong, a seven-time Tour de France victor, defrauded the government by doping while sponsored by the U.S. Postal Service.
45-year-old Armstrong was stripped of his seven Tour de France titles and ban from competing professionally for life in August 2012 after he admitted to using performances enhancing drugs throughout all seven of his Tour victories.
Lance Armstrong led the U.S. postal team to a number of Tour de France victories.
Armstrong has argued that the government's legal claims are deficient on several grounds, among them that the Postal Service benefited tremendously from its sponsorship of the cycling team.
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In 2013, Armstrong confessed to knowingly using performance-enhancing drugs during an interview with Oprah Winfrey.
He also said it was up to jurors to decide if the government suffered any damages from the fallout surrounding Armstrong's confessed doping.
"The Court generally adopts Armstrong's proposed "benefit-of-the-bargain" approach to calculating damages in FCA [False Claims Act] cases, like this one, where the market value of goods or services supplied under a government contract are hard to determine", Cooper wrote. Landis stands to collect up to 30 percent of that money as a whistleblower. "Accordingly, the Court declines to grant Armstrong summary judgment on damages and will set the case for trial".
"There is no actual evidence of any quantifiable financial harm", to the Postal Service, Peters said.
The government's case claims that Armstrong, his team's owner - Tailwind Sports Corp. - and the team's sporting director, Johan Bruyneel, violated the False Claims Act by taking payments from the Postal Service while "actively concealing the team's violations of the agreements' anti-doping provisions".
Lance Armstrong (in 2001 photo) and the U.S. Postal Service are locked in a fraud lawsuit over whether his doping admissions while sponsored by the Postal Service diminished its brand.
On Monday, a federal judge opened the door for a government lawsuit to peddle its way to trial.