I am surprised that nobody has brought up the statements made by L.A., under penalty of perjury, in the initial case brought by SCA against him, including that he never doped, never took performance enhancing substances. I think these statements are the main factor that prevent him from admitting the truth now.
I am not sure, however, whether SCA would win a new trial: at the time, there were several witnesses giving sworn statements that Armstrong told them he had doped, and still SCA did not win the case. Today there are even more witnesses, some of which also testifying to personally seeing Armstrong dope, but it will still be their word against his. I am not sure the situation is fundamentally different when it comes to the burden of proof.
On the other hand, Lance Armstrong will not want another trial where he is forced to deny doping under oath, and forced to contradict a very large number of very specific allegations, any one of them could subsequently be unequivocally proven true by some new evidence turning up, with the consequence of him going straight to jail. Since SCA has no business in exposing the truth, and Armstrong has no interest in a trial, I expect an out-of-court settlement, but one which reflects that L.A. stands to lose a lot more were it go to trial.
Worth watching:
http://www.youtube.com/watch?v=JZXfQFSewU8
The Sunday Times trial could be a lot more explosive - different legal system, and an opponent who is most definitely interested in putting Armstrong on the record and exposing the truth.
The fact is that L.A. now has this choice: Confess, and possibly go to jail for contempt of court but rebuild his post-racing career with some sort of redemption story, or keep up the lies, avoid jail, but with no prospect of future earnings. I hope he gets some good advice.