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Lance loses $10 mill arbitration

A Texas arbitration panel ordered Lance Armstrong and Tailwind Sports Corp. to pay $10 million in a fraud dispute for what it called an “unparalleled pageant of international perjury, fraud and conspiracy” covering up his use of performance-enhancing drugs during his streak of Tour de France wins. Armstrong’s 7 Tour de France wins were stripped after Armstrong and his US Postal Service teams were found to have used banned performance-enhancing drugs.

SCA Promotions of Dallas announced the 2-1 decision against Armstrong today when the Texas 116th Civil District Court confirmed the February 4 arbitration ruling. The panel included one person selected by each side and a neutral chairman, Larry Faulkner, who ruled for SCA.

SCA was contracted by Tailwind Sports, owner of the US Postal Service team, to pay Armstrong bonuses for winning the Tour de France. Armstrong was paid $4.5 million by SCA for his 2001, 2002, ands 2003 Tour victories and was to be paid $5 million for his 2004 win. In 2004, the book LA Confidential was released, alleging that Armstrong cheated and SCA cited the book as evidence when it refused to pay the 2004 bonus. Armstrong sued and settled out of court in 2006 for $7.5 million – the original $5 million plus $2.5 million in legal fees and interest. During the original SCA v. Armstrong arbitration case, Frankie and Betsy Andreu took the stand against Armstrong, testifying that the Texas cyclist was using banned drugs. During that arbitration hearing, Armstrong testified under oath he did not use performance enhancing drugs.

When Armstrong admitted in a 2013 televised interview with Oprah Winfrey that he had used banned performance-enhancing drugs in his Tour de France victories, and after Armstrong’s cheating was exposed in a thorough report by the United States Anti-Doping Agency, SCA filed a new case demanding repayment of the full $12 million it paid to Armstrong. Armstrong attorneys argued that the 2006 settlement was binding. The Texas court agreed with SCA, but did not award the full $12 million it sought.

Armstrong argued that the original settlement could not be overturned under state law. The AP reported that the arbitration majority ruled that $10 million was a penalty for lying and efforts to intimidate or coerce witnesses in the previous case.

The latest decision was made solely on testimony provided the Texas court, and “without any reliance upon the USADA report,” the awards reads.

Regarding its award against Armstrong, the majority decision stated: “Perjury must never be profitable. Tailwind Sports Corp. and Lance Armstrong have justly earned wide public condemnation. That is an inadequate deterrent. Deception demands real, meaningful sanctions.”

The AP reported that Armstrong’s attorney Tim Herman declined to comment.