The sports insurance company that paid Lance Armstrong $12 million in bonuses for winning the Tour de France announced Wednesday that it intends to sue. A spokesman for SCA promotions said the suit will seek to recover money paid to Armstrong for wins between 2002 and 2005 and damages.
A lawyer for Armstrong says there is no grounds for the suit and that his client does not intend to pay:
"My only point is no athlete ever, to my understanding, has ever gone back and paid back his compensation," Herman told USA Today.
He said the dispute should be solely with Tailwind, the owner of the U.S. Postal Service-sponsored team Armstrong rode for, and not the cyclist.
An unsuccessful effort was made to settle the case out of court. The details of those negotiations have not been made public.
The latest development comes as U.S. media reported that Armstrong could face a fresh federal investigation.
Armstrong sued SCA after it delayed his 2005 bonus payment due to drug use allegations. In the proceedings, he testified under oath that he had never doped, and SCA settled with Armstrong shortly thereafter.