A Texan insurance company is pursuing Lance Armstrong for US$11million.
SCA Promotions insured performance bonuses paid to the American after he claimed his fourth, fifth and sixth Tour de France victories.
As the International Cycling Union (UCI) has now stripped Armstrong of his seven Tour titles, SCA will demand the money back from Armstrong.
“We will make a formal demand for return of funds,” SCA’s lawyer, Jeffrey M. Tillotson said.
“If this is not successful, we will initiate formal legal proceedings against Mr Armstrong in five business days (Monday 29 October).”
The insurance policy was taken out by Tailwind Sports, owner of the US Postal team, to cover performance bonuses that would be due to Armstrong if he won the Tours.
SCA initially refused to pay out money covering the bonus for Armstrong’s sixth Tour de France win in 2004, totalling $5m, because it argued Armstrong was not a clean rider.
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.
It meant SCA was forced to pay out US$7.5million – a US$5million bonus, plus US$2.5million in interest and legal fees.
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