Lance Armstrong and Tailwind have lost an arbitration case for $10 million to SCA Promotions.
In 2005, Armstrong filed a case against SCA Promotions, his insurance company, due to unpaid bonuses after winning the 2004 Tour de France. During the case, Armstrong’s use of banned performance enhancing drugs came into question. Armstrong lied under oath saying, “I race the bike straight up fair and square,” (we all know that wasn’t true). By the end, SCA Promotions lost the case and was forced to pay the remainder of Armstrong’s bonuses.
After the final payout, SCA Promotions’ grand total of awarded bonuses to Armstrong summed $12 million.
Now, SCA Promotions is looking to settle the score. After a 2-1 decision, a three-man arbitration team found Armstrong and Tailwind Sports Corporation guilty of engaging in “an unparalleled pageant of international perjury, fraud and conspiracy.” The penalty comes to $10 million which will be paid directly to SCA Promotions.
After Lance’s come-clean moment, he told Outside that he “offered to pay SCA the entire $10 million in order to resolve the matter, but SCA refused.”
“Perjury must never be profitable,” stated the majority in their decision. This is believed to be the biggest sanction against an individual in American judicial history, but it’s only one of a few recent cases against Armstrong.
In 2013, Armstrong reached an out-of-court settlement with Acceptance Insurance who sued him for fraud. Most recently, Armstrong may have to defend himself against a $100 million federal government payout. And lastly, former teammate Floyd Landis is suing Armstrong over his team’s sponsorship contract with the Postal Service.