A source with knowledge of the situation denied the reports.
Then there is a whistleblower lawsuit filed in 2010 by Floyd Landis, a former U.S. Postal rider. In the suit Landis accuses the team's former management of defrauding the government of millions of dollrs because the team management knew about the drug use and didn't do anything.
A source familiar with the matter confirmed to CNN that lawyers for Armstrong are in discussions with the Justice Department regarding the case. The government has until Thursday to intervene, not intervene or ask for an extension, the source said.
The Justice Department declined Tuesday to comment on potential civil action against Armstrong, saying the whistleblower suit is under court seal.
A spokesman for the U.S. Postal Service told CNN it could not discuss any of the legal issues associated with Armstrong and their prior relationship.