February 7, 2013 - 10:18 AMT
PanARMENIAN.Net - A Texan company plans to file a lawsuit on Thursday , Feb 7, to recoup $12 million from disgraced cyclist Lance Armstrong, according to BBC Sport.
SCA Promotions insured bonuses paid to Armstrong when he claimed his fourth, fifth and sixth Tour de France wins.
The American has admitted using performance-enhancing drugs for all seven of his Tour victories.
SCA lawyer Jeff Dorough told BBC Sport: "I can now confirm we intend to file a suit against Mr Armstrong first thing on Thursday morning."
He said the company is also seeking legal costs, interest and punitive damages from the 41-year-old American, who was stripped of his seven Tour titles after being exposed as a drugs cheat.
The insurance policy was taken out by Tailwind Sports, owner of the U.S. Postal team, to cover performance bonuses payable to Armstrong if he claimed his fourth, fifth and sixth Tour victories.
SCA initially refused to pay out money covering the bonus of £5m for Armstrong's sixth Tour win in 2004 because it argued he 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. He was awarded $2.5m in damages and costs.
But, after Armstrong's confession of doping to Oprah Winfrey last month, SCA is looking to recover a total of $12m, which includes payments after the 2002 and 2003 races.
Armstrong's attorney Tim Herman has said his client does not intend to repay the money.