WASHINGTON — A Texan company was yesterday due to file a lawsuit to recoup $12 million from disgraced cyclist Lance Armstrong.
Reuters
SCA Promotions insured bonuses paid to Armstrong when he claimed his fourth, fifth and sixth Tour de France wins.
The American has admitted using performance-enhancing drugs for all seven of his Tour victories.
SCA lawyer Jeff Dorough told BBC Sport: “I can now confirm we intend to file a suit against Armstrong first thing on Thursday (yesterday) morning.”
He said the company was also seeking legal costs, interest and punitive damages from the 41-year-old American, who was stripped of his seven Tour titles after being exposed as a drugs cheat.
The insurance policy was taken out by Tailwind Sports, owner of the United States Postal team, to cover performance bonuses payable to Armstrong if he claimed his fourth, fifth and sixth Tour victories.
SCA initially refused to pay out money covering the bonus of £5 million for Armstrong’s sixth Tour win in 2004 because it argued he was not a clean rider.
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Armstrong took the company to an arbitration hearing in Dallas in 2005 and won, because the contract between the parties stipulated the insurance money would be payable if Armstrong was the “official winner” of the Tour. He was awarded $2,5 million in damages and costs.
But, after Armstrong’s confession of doping to Oprah Winfrey last month, SCA is looking to recover a total of $12 million, which includes payments after the 2002 and 2003 races.
“At the time of the arbitration, Armstrong’s legal team and representatives claimed repeatedly that SCA would only be entitled to repayment if he was stripped of his titles, and since that has now come to pass, we intend to hold them to those statements,” added Dorough.
Armstrong’s attorney Tim Herman has said his client does not intend to repay the money.
“My only point is no athlete ever, to my understanding, has ever gone back and paid back his compensation,” Herman said.
The latest development comes as US media reported that Armstrong could face a fresh federal investigation.
Jeff Tillotson, the Dallas Attorney who represented SCA in the 2005 case, told BBC Radio 5 live last month that Armstrong had a legal and moral obligation to return the bonuses.
“We paid him $12 million for being the official winner of three Tour de France races and swearing under oath he was a clean rider during those races,” said Tillotson on the BeSpoke programme.
“He’s now told us, at least through Oprah, that he lied when he told us he was a clean rider”.
