Insurance Company To Sue Lance Armstrong For Millions

He lied about virtually everything. And we are going to ask the arbitration panel that heard that testimony to punish him and hold him accountable for it.

-SPCA Promotions Attorney

The sports insurance company that paid Lance Armstrong more than $10 million in bonuses plans to file a lawsuit to recover its money, an attorney for SCA Promotions told CNN on Wednesday.

Jeffrey Tillotson said SCA has already asked the disgraced former cycling champ for the money back.

An attorney for Armstrong said the claim has no merit.

Tillotson said the suit, which has not been filed yet, will ask for the return of $12 million in bonus money paid for wins from 2002 to 2005 and for millions in legal costs and interest.

Armstrong sued SCA after it delayed his 2005 bonus payment and raised questions about allegations involving his use of performance-enhancing drugs. Armstrong testified under oath in that case that he had never doped. SCA settled with Armstrong a year later.

“But both he and his lawyers almost taunted us and said if we are ever stripped of those titles, we will give you the money back,” Tillotson said Wednesday. “We will simply ask him to finally live up to his word and give that money back.”

Armstrong’s attorney, Mark Fabiani, argues the insurance company has no right to the money because of the 2006 settlement agreement, which reads in part, “no party may challenge, appeal or attempt to set aside the arbitration award.”

Fabiani says, “It is clear as day the insurance company has zero right to reopen the matter.”

Tillotson said that Armstrong lied throughout his testimony, not just about whether he had blood doped or taken steroids.

Amid the lawsuit comes news that the USADA, the agency that investigated the cyclist’s performance-enhancing drug use and banned him for life from sports, has given him an extra two weeks to decide if he’ll speak with investigators under oath.

The agency has said cooperating in its cleanup effort is the only path to Armstrong getting his ban reduced. The agency extended its original Wednesday deadline to Feb. 20.

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