Lance Armstrong asked to repay $7.5 million bonus to insurance firm
October 23 , 2012
A Texas insurance company has asked cyclist Lance Armstrong to return $7.5 million worth of bonuses.
SCA Promotions covered a performance bonus after Armstrong won his sixth Tour de France in 2004.
However, after the International Cycling Union (UCI) stripped the American of his seven Tour titles, SCA is demanding the money back.
SCA's lawyer Jeffrey M. Tillotson told the BBC on Monday: "We will make a formal demand for return of funds."
He added: "If this is not successful, we will initiate formal legal proceedings against Mr Armstrong in five business days (October 29)."
The insurance policy was taken out by Tailwind Sports, the then owner of the U.S. Postal team, to cover performance bonuses that would be paid to Armstrong if he won the Tour.
At the time, SCA refused to pay the money because it argued Armstrong was not a clean rider.
Armstrong took legal action against the company and won as the contract stated that the money would be payable if Armstrong was the "official winner" of the Tours from 2004 to 2006.
The company was forced to pay $5 million, plus $2.5 million in interest and legal fees.