What he is doing isn't stupid at all, because he likely has no real choice, but what he has been doing is monumentally and colossally stupid.  He has stupidly maneuvered himself into a no win situation.  
He has dragged his downfall out for years.  He has forced his opponents to allocate significant resources to fight him--now they're committed and they're not likely to back down until they get seriously paid.  
Lance had the knowledge available to predict how bad this was going to get, at the latest, when he knew his former henchmen were talking to the GJ.  That was when he needed to generously negotiate.  He didn't need to admit any fault--he could have generously paid off the Times, the Feds, Acceptance, and maybe even SCA.  Once the criminal process was over, he could have made his public apologies.  Then, after a decent interval, he could have commenced his redemption campaign.  Awful for awhile, but no loose ends. 
But nooooo, Lance goes into full-on hostility mode, IMO completely rejecting the advice of his top-drawer crisis managers.  Now, the agony drags on and on and Lance's opponents become more and more implacable.  Lance's only way to mess with them now is a long battle to delay t he inevitable.   Unfortunately for him, it appears that is the best, and only, tactic remaining to him.