Lance Armstrong settles $3mn insurance fraud lawsuit

Lance Armstrong settles $3mn insurance fraud lawsuit

Lance Armstrong settles $3mn insurance fraud lawsuit Lance Armstrong avoided a potential deposition and $3mn in insurance fraud remunerations as Nebraska-based Acceptance Insurance of Omaha reached a settlement in its lawsuit against the formerly revered cyclist.

The lawsuit was filed earlier this year in a Texas state court in Austin, seeking to win back the $3mn in performance bonuses it paid Armstrong for his Tour de France victories from 1999 to 2001. The insurer also sought additional damages and fees for what it called “fraud, unjust enrichment and breach of contract.”

Although both parties declined to provide details of the settlement, Armstrong’s attorney Tim Herman told the Wall Street Journal the case had been “resolved to the mutual satisfaction of the parties.” Acceptance attorney Mark Kincaid confirmed the settlement, and added that the planned deposition of Armstrong “is off.”

The deposition was expected to ask Armstrong to provide details of his doping dating back to 1995, including who received payment for the drugs, who determined the dosing amounts, and who was aware of the drug use. Acceptance also sought information on how Armstrong’s friends, family and colleagues learned about his doping.

Although Armstrong has admitted to using performance-enhancing drugs in media interviews, the deposition would have been the first time he provided sworn testimony on the subject.

Earlier this year, the cyclist was stripped of his seven Tour de France titles and the subject of several lawsuits reaching $100mn. He still faces similar lawsuits from a Dallas-based promotions company and the US Postal Service.
  • Sharon Stiner 11/25/2013 6:57:50 AM
    why in today's economy were they giving him this amount of money to begin with?
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