Free speech protects the right of individuals to lie, yes, but does it allow them to lie in order to make money? I don't think so. An awful lot of scams have been broken up on those grounds.
As for USPS, I thought LA's argument was that they profited from the association. Now he's saying USPS should have known? So that anti-doping clause in the contract was just for show? It was supposed to be understood by both sides that it wasn't serious, and carried no legal weight?
His refusal to meet with Betsy sounds like paranoia. How could she possibly harm him or his interests in a five minute meeting? If he and his lawyers were concerned about his confessing to the hospital scene, he could have just repeated his "I don't recall" (that was made famous during the Watergate hearings, by the way. Almost all the principals relied on that). He could have said he was sorry without actually confessing. Betsy would have taken that.
I don't think LA understands Betsy at all. She might have indeed been well advised to steer clear of him, but she was willing to meet him, willing to forgive, even wanted to give him a picture for old times sake. I don't think anyone else LA harassed was willing to come this far. When you're in the position LA is in, you should embrace people like this, they are the best friends you have.