Lou passed away on 19 August (16) at a Texas prison, where he had been serving a 25-year sentence stemming from his involvement in a huge Ponzi scheme that swindled 1,700 investors out of $500 million (£382 million).
He was also sued by many of the pop acts he managed, including Nsync, the Backstreet Boys and Aaron Carter, for fraud and misrepresentation.
Of the disgraced mogul's death Lance, 37, told Entertainment Tonight: "The worst way to go, I think, is dying in prison so... if you believe in karma, he got his in the end."
The Bye Bye Bye singer also admits that he had conflicted feelings about the pop Svengali's death due to their troubled relationship.
"You never want to hear (of) anyone passing away, and I will never speak ill of the dead," he explains. "But it's very conflicting feelings, of course. We didn't have the best relationship at all, but if it wasn't for him I wouldn't have met four of my best friends."
Lance's latest comments come after his statement following the businessman's death, when he wrote on Twitter: "Word is that #LouPearlman has passed away. He might not have been a stand up businessman, but I wouldn’t be doing what I love today wout (without) his influence. RIP Lou."
Bandmate Justin Timberlake also offered warm words for his former mentor after hearing of his passing, writing, "I hope he found some peace, God bless and RIP, Lou Pearlman."
A number of other stars managed by Lou, including Aaron Carter, O-Town's Ashley Parker Angel and the Backstreet Boys' AJ MCLean and Howie Dorough, also took to Twitter after Lou's death to thank the disgraced music manager for discovering them.