A Dallas-based sports promotion insurance company yesterday filed suit in Dallas County state district court against disgraced cyclist Lance Armstrong, seeking a return of at least $12 million in bonuses in light of Armstrong being stripped of his Tour de France titles for doping, according to the Dallas Morning News.
SCA Promotions yesterday sued Armstrong, his agent Bill Stapleton, and Tailwind Sports, Armstrong's former management company, for bonuses paid Armstrong for winning the Tour de France in 2002 and 2003. SCA withheld the 2004 bonus based on allegations that Armstrong had used performance-enhancing drugs, the Dallas Morning News reports.
Read related: “Sports Insurer May Take Legal Action Against Armstrong.”
SCA's lawsuit claims that Armstrong and his agent engaged in a civil conspiracy to commit fraud regarding Armstrong's “rampant drug use,” and also charges them with unjust enrichment and breach of contract, accordintg to the Wall Street Journal.
The suit also claims Armstrong perjured himself in January 2006 when SCA was trying to prove in arbitration hearings that he cheated to win the Tour de France. “I race the bike straight up fair and square,” Armstrong testified under oath in arbitration, the suit says. The cyclist was awarded $7.5 million in a February 2006 settlement because he was still the official winner of the 2004 Tour.
Tim Herman, one of Armstrong's lawyers, has said that settlement was final and cannot be challenged. However, SCA's lawsuit claims otherwise, stating that Herman admitted to arbitrators in 2005 that Armstrong would repay the money if he were ever stripped of his Tour titles.
“By now, everyone knows that Lance Armstrong perpetuated what may well be the most outrageous, coldhearted and elaborate lie in the history of sports,” the lawsuit states.
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