The seven times Tour de France winner has confessed to doping.
On Monday a federal judge refused to dismiss a U.S. Government lawsuit against him.
The government is seeking nearly $100 million in damages from Armstrong and his former team U.S. Postal Service Pro Cycling Team.
The damages are to compensate for what USPS paid out in sponsorship.
The decision clears the way for the case to proceed to trial, and could potentially ruin Armstrong financially.
Euro News reports:
The US justice department has accused Armstrong of defrauding the government by accepting millions of dollars of sponsorship money from the US postal service, while engaged in secret, systematic doping.
Lance Armstrong led the US postal team to a number of Tour de France victories.
The cancer survivor was stripped of his seven tour victories after the US anti-doping agency uncovered a clandestine and sophisticated doping programme.
Armstrong had long denied the accusation and used the law and intimidation to shout those down who accused him of the offence.
The suit was brought by former teammate Floyd Landis, himself stripped of a tour title after doping, under the False Claims Act, which allows whistle-blowers to pursue fraud cases for the government in return for 25 percent of monies recovered.