Speedo USA has announced the termination of its sponsorship of Ryan Lochte and Ralph Lauren will not renew the swimmer's contract following his false robbery claims.
Lochte - along with Gunnar Bentz, Jack Conger and Jimmy Feigen - alleged that they were robbed at gunpoint at a petrol station after attending a party.
However, their version of events unravelled following the discovery of CCTV footage that showed the swimmers involved in a confrontation with security personnel at the petrol station, where they are alleged to have caused damage, before returning to the athletes' village with their possessions.
Lochte, 32, subsequently conceded that he had "over-exaggerated" his story and apologised for his "immature behaviour", with United States Olympic Committee CEO warning that the quartet faced "further action".
And Speedo has now moved to make its stance on the matter clear.
"Speedo USA today announces the decision to end its sponsorship of Ryan Lochte," read a statement.
"As part of this decision, Speedo USA will donate a $50,000 portion of Lochte's fee to Save the Children, a global charity partner of Speedo USA's parent company, for children in Brazil.
"While we have enjoyed a winning relationship with Ryan for over a decade and he has been an important member of the Speedo team, we cannot condone behaviour that is counter to the values this brand has long stood for.
"We appreciate his many achievements and hope he moves forward and learns from this experience."
Ralph Lauren later announced it had also cut ties with Lochte.
A company statement said: "Ralph Lauren continues to proudly sponsor the U.S. Olympic and Paralympic Team and the values that its athletes embody.
"Ralph Lauren's endorsement agreement with Ryan Lochte was specifically in support of the Rio 2016 Olympic Games and the company will not be renewing his contract."