Case 1:10-cv-00976-CRC Document 253 Filed 12/18/14 Page 1 of 5

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLUMBIA
)
UNITED STATES ex rel. FLOYD
)
LANDIS,
)
)
Plaintiffs,
)
)
v.
)
)
TAILWIND SPORTS CORPORATION,
)
et al.,
)
)
)
Defendants.
___________________________________ )

No. 10-cv-00976 (CRC)

JOINT STIPULATION OF DISMISSAL

Relator Floyd Landis (Relator) and Defendants Capital Sports and
Entertainment Holdings, Inc., William Stapleton and Barton Knaggs (collectively the
CSE Defendants or Defendants) submit this Joint Stipulation of Dismissal, pursuant to
the settlement agreement entered into on December 10, 2014 by Relator, the Law Offices
of Paul D. Scott, P.C. (Relators Counsel), and the CSE Defendants (the Settlement
Agreement), a copy of which is attached hereto as Exhibit A.
JOINT STIPULATION
WHEREAS, Relator filed this qui tam action under the federal False Claims Act
on behalf of the United States on June 10, 2010, filed a First Amended Complaint on
December 23, 2010, and filed a Second Amended Complaint on February 22, 2013
(collectively the Action).
WHEREAS the Action alleges that the CSE Defendants caused to be submitted
and conspired to submit false claims and reverse false claims to the United States in
connection with the United States Postal Services sponsorship of the USPS Pro Cycling
Team, and the CSE Defendants deny all such allegations and claims.

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WHEREAS, the Government has not intervened in the Action as to the CSE
Defendants.
WHEREAS, Relator and the CSE Defendants negotiated in good faith and
reached an agreement in principle resolving all of Relators claims against the CSE
Defendants.
WHEREAS, following their agreement in principle Relator and the CSE
Defendants communicated the terms of the agreement to the United States Department of
Justice.
WHEREAS, in preparing settlement documents, Relator and the CSE Defendants
have sought to incorporate, where possible, the standard provisions included in False
Claims Act settlements entered into by the United States Department of Justice.
WHEREAS, Relator and the CSE Defendants have executed the Settlement
Agreement attached as Exhibit A, a copy of which was provided to the United States on
December 11, 2014.
WHEREAS, the United States Department of Justice has not stated whether or not
it approves of the Settlement Agreement as of the date of this stipulation.
WHEREAS, the Parties propose to provide the United States with 43 days within
which to further review the Settlement Agreement and to approve or object to its terms.
WHEREAS, the Settlement Agreement provides that the CSE Defendants shall
pay the United States $500,000.00 (Five Hundred Thousand Dollars) and that Relator and
the CSE Defendants each release certain claims against each other as set forth in the
Settlement Agreement. See Settlement Agreement, Exhibit A at III (1), (5), (6).
WHEREAS, the Settlement Agreement represents a fair and reasonable resolution
of the claims in the Action.
WHEREAS, 31 U.S.C. 3730(d)(2) provides that the Relator shall also receive
an amount for reasonable expenses which the court finds to have been necessarily
incurred, plus reasonable attorneys fees and costs.

ii

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WHEREAS, in the more than four and a half years of this litigation, according to
Relators counsel, they have reviewed and produced thousands of pages of documents;
reviewed thousands of pages of documents produced by the CSE Defendants and others;
contracted for, set up, and maintained an electronic repository for the review and coding
of documents; engaged in extensive investigative work and legal research; responded to a
motion to dismiss filed by the CSE Defendants; jointly with the United States drafted and
filed a motion to strike the affirmative defenses of defendants, including the CSE
Defendants; prepared numerous memos and briefing papers for the United States
regarding the legal and factual matters relating to the Action; drafted and responded to
written discovery; drafted meet and confer correspondence, engaged in meet and confer
conferences, and prepared summary discovery motions; participated in numerous inperson and telephonic conferences with government personnel responsible for the Action
and with counsel for the CSE Defendants; conferred with and advised their client and
worked with him to respond to discovery requests; and ultimately negotiated a settlement
of this False Claims Act litigation as it relates to the CSE Defendants.
WHEREAS, the Settlement Agreement provides that the CSE Defendants shall
pay Relators Counsel $100,000.00 (One Hundred Thousand Dollars) to cover a portion
of the reasonable attorneys fees and costs incurred by Relators counsel during the more
than four and a half years of litigation of this matter.
WHEREAS, the Settlement Agreement expressly does not seek to release, and
reserves, specific civil, administrative, and criminal claims of the United States. See
Exhibit A at III (11).
WHEREAS, the Settlement Agreement provides that the CSE Defendants may
not seek to charge the United States or otherwise seek reimbursement from the United
States for payments provided for in the Settlement Agreement or the costs incurred in
investigating, litigating, and settling the Action. See Settlement Agreement, Exhibit A at
III (14).

iii

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WHEREAS, given the delay, uncertainty, inconvenience, and expense of

protracted litigation of the Action, Relator and the CSE Defendants agree the Settlement
Agreement is fair, adequate, and reasonable under all the circumstances.
WHEREAS, when the Government does not intervene in a qui tam action during
the period provided for in 31 U.S.C. 3730(b)(b), the relator retains the right to conduct
the action. 31 U.S.C. 3730(b)(4)(B) & 3730(c)(3).
THEREFORE, Relator and the CSE Defendants, by and through their counsel of
record, hereby stipulate to the following:
1.

Pursuant to Federal Rule of Civil Procedure 41(a) and 31 U.S.C.

3730(b), subject to the consent of the United States or subject to notice and a
reasonable opportunity for the United States to be heard on or before January 30, 2015
with any objections to the Settlement Agreement or dismissal, and subject to the approval
of this Court, Relator dismisses the Second Amended Complaint against the CSE
Defendants with prejudice as to the Relator and the United States.
2.

Upon the condition that the Settlement Agreement is approved by the

Court, Relator and the CSE Defendants shall have no liability to each other for their costs
and attorneys fees with respect to the Action except as specifically provided for in the
Settlement Agreement. Relator and his counsel retain the right to seek from the other
defendants in the Action all expenses, legal fees and costs incurred in connection with the
Action, which are not being paid under the Settlement Agreement.
3.

The Court shall retain jurisdiction to enforce the terms of the Settlement

Agreement and to resolve, pursuant to 31 U.S.C. 3730(d), any disputes regarding

Relators statutory share from the United States, which disputes may be raised with the
Court by motion.
4.

This Stipulation does not dismiss any claims against any of the defendants

in the Action with the exception of the CSE Defendants.

IT IS SO STIPULATED.
iv

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Dated: December 18, 2014

Respectfully submitted,

/s/ John P. Pierce___________

John P. Pierce (D.C. Bar No. 475101)
THEMIS PLLC
2305 Calvert Street, NW
Washington, DC 20008
(202) 567-2050 Telephone
(202) 567-2051 Facsimile
jpierce@themis.us.com

__________ /s/________________
Paul D. Scott
pdscott@lopds.com
California State Bar No. 145975
Admitted Pro Hac Vice
___________/s/________________
Lani Anne Remick
laremick@lopds.com
California State Bar No. 189889
U.S.D.C. No. PA0045
Jon L. Praed
U.S.D.C. No. 450764
D.C. Bar No. 51665
LAW OFFICES OF PAUL D.
SCOTT, P.C.
Pier 9, Suite 100
San Francisco, California 94111
Tel: (415) 981-1212
Fax: (415) 981-1215

Marc S. Harris (pro hac vice)

SCHEPER KIM & HARRIS LLP
601 West Fifth Street, 12th Floor
Los Angeles, CA 90071-2025
(213) 613-4655 Telephone
(213) 613-4656 Facsimile
mharris@scheperkim.com
Attorneys for Capital Sports and
Entertainment Holdings, Inc., William
Stapleton and Barton Knaggs

Attorneys for Relator Floyd Landis

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