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That was good luck for media day and talked to everybody with his little girl in his arms. >> she class act. >> kelly: department of justice now side go on to lawsuit against lance armstrong. u.s. postal service sponsored armstrong's team and for years he strongly denied cheating. he poured his heart out to oprah winfrey on national television and admitted that he was, indeed doping. the government now wants its money back. does it has a case. do you go burns and mercedes cohen. thank you for joining us. let's get to heart of the matter. a stunning case with his admission and now claiming

Armstrong defrauded postal service. justice department is joining the lawsuit that was filed in 2010. the bottom line is does it add anything to the case that landes had and what impact will it have going forward with this. mercedes? >> with certainly a lot of muscle for landes. he has the federal government, they have tremendous resources, much more than landes would have. here is the real thing here. we know he is liar and cheat. he may get a pass. they have to say wait a minute, if you look at the four corners of the contract with the post office it doesn't say anything about blood doping. ...

Think what they caught schedule three substance, human growth who are hormone and others. they do have them on liability elevision admission. as mercedes says the damages may be tricky. >> kelly: armstrong as attorneys have been trying to negotiate with a settlement but it appears two sides are far apart by tens of millions of dollars. post office went on to say it saw a benefit of hundred million dollars. if that is the case, how do you see the case playing out in terms of what arm strong will have to pay in order to settle this? >> great question. here is the real rub here. he is spending a ...

You this because he has been-sponsored. >> bill: how did he defraud. >> he used drugs? >> bill: why would the u.s. postal service be involved. >> condition of it? >> they sponsored him. >> bill: the u.s. postal service sponsored armstrong. >> yes. >> bill: that's taxpayer money, right? >> yes. >> >> they sponsored him and thought he was clean. >> one of the conditions of the contract sponsorship that he not use any of the -- bill in the contract. >> correct. vials of it. >> bill: they are in the suit. if it's ruled so, he has to pay triple damages. >> doesn't have to pavement. >> could be. >> ...

Been-sponsored. >> bill: how did he defraud. >> he used drugs? >> bill: why would the u.s. postal service be involved. >> condition of it? >> they sponsored him. >> bill: the u.s. postal service sponsored armstrong. >> yes. >> bill: that's taxpayer money, right? >> yes. >> >> they sponsored him and thought he was clean. >> one of the conditions of the contract sponsorship that he not use any of the -- bill in the contract. >> correct. vials of it. >> bill: they are in the suit. if it's ruled so, he has to pay triple damages. >> doesn't have to pavement. >> could be. >> bill: what does floyd ge...