Armstrong Settles with Dallas Insurer Over Tour de France Bonuses

By | September 28, 2015

Lance Armstrong settled a cycling promotion court fight on confidential terms but still has a lawsuit over a U.S. Postal Service sponsorship to contend with.

Armstrong settled two related lawsuits with SCA Promotions Inc. over claims the former champion cyclist’s doping practices cheated it out of millions of dollars in bonuses paid for three of his seven Tour de France titles, the promoter said in a statement.

“While the terms of the settlement are confidential, SCA can say that the agreement was mutually acceptable to both parties,” Jeff Tillotson, a lawyer for SCA, said in the statement.

Armstrong still faces a federal whistle-blower lawsuit by former teammate Floyd Landis over his team’s sponsorship contract with the U.S. Postal Service.

Armstrong was ordered by an arbitration panel in February to pay SCA $10 million. The promoter sued Armstrong and his now-defunct management company, Tailwind Sports Corp., in state court in Dallas to enforce the award. In 2006, SCA paid Armstrong $7.5 million through arbitration to end a dispute over a bonus for winning the 2004 Tour de France after allegations the cyclist cheated.

At the time, Armstrong insisted that he had won fairly.

SCA sought to reopen the case in June 2013 after Armstrong admitted that he had doped during his racing career.

Timothy Herman, a lawyer for Armstrong, didn’t immediately return a call to his office Sunday seeking comment on the agreement.

Armstrong, who set records by winning the Tour de France each year from 1999 to 2005, was stripped of the titles in August 2012 by the International Cycling Federation. He admitted in a January 2013 television interview with Oprah Winfrey that he’d used a “cocktail” of testosterone, erythropoietin and blood transfusions throughout his career.

The cases are SCA Promotions Inc. v. Armstrong, DC-13-01564, and SCA Promotions Inc. v. Armstrong, DC-15-01764, District Court of Dallas County, Texas, 116th Judicial District.


Topics Carriers

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