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Armstrong Facing Two More Lawsuits Armstrong Facing Two More Lawsuits
(about 9 hours later)
In the wake of his doping confession, Lance Armstrong is facing another two lawsuits, including one filed by an insurance company that paid him $3 million in bonuses for his first three Tour de France victories. In the wake of his doping confession, Lance Armstrong is facing two more lawsuits, including one filed by an insurance company that paid him $3 million in bonuses for his first three Tour de France victories.
Acceptance Insurance Company, based in Nebraska, sued Armstrong and Tailwind Sports Corp., his former team’s management company, on Thursday, claiming that Armstrong committed fraud because he hid the fact that he doped when winning the Tour in 1999, 2000 and 2001. Acceptance Insurance Company, based in Nebraska, sued Armstrong and Tailwind Sports Corporation, his former team’s management company, on Thursday, claiming that Armstrong committed fraud because he hid his use of performance-enhancing drugs when winning the Tour in 1999, 2000 and 2001.
The lawsuit, filed in Travis County Court in Austin, Tex., said Armstrong’s lies voided the policy he had with the insurance company.The lawsuit, filed in Travis County Court in Austin, Tex., said Armstrong’s lies voided the policy he had with the insurance company.
Armstrong, the disgraced former seven-time Tour winner, also was sued in federal court in Los Angeles on Thursday. That class action lawsuit said that Armstrong and FRS, which makes nutritional supplements for which Armstrong served as a spokesman, engaged in false advertising when Armstrong said in advertisements that FRS was the “secret weapon” to his success. Armstrong, who has been stripped of his seven Tour titles, was also sued in federal court in Los Angeles on Thursday. That class-action lawsuit said that Armstrong and FRS, which makes nutritional supplements for which Armstrong served as a spokesman, engaged in false advertising when Armstrong said in advertisements that FRS was the “secret weapon” to his success.
Mark Fabiani, a spokesman for Armstrong, declined to comment on the lawsuits.Mark Fabiani, a spokesman for Armstrong, declined to comment on the lawsuits.
The cases add to Armstrong’s mounting legal woes after he admitted in January that he used banned performance-enhancing drugs and blood transfusions during most of his cycling career.The cases add to Armstrong’s mounting legal woes after he admitted in January that he used banned performance-enhancing drugs and blood transfusions during most of his cycling career.
Though Armstrong’s estimated worth is about $125 million, his fortune appears to be in jeopardy, with potential legal payouts in excess of $106 million. The greatest threat to his bank account is a federal whistle-blower lawsuit unsealed last week in Washington.Though Armstrong’s estimated worth is about $125 million, his fortune appears to be in jeopardy, with potential legal payouts in excess of $106 million. The greatest threat to his bank account is a federal whistle-blower lawsuit unsealed last week in Washington.
Last week, the government joined Floyd Landis, one of Armstrong’s former teammates, as a plaintiff in the case that says Armstrong defrauded the government because he was doping while on the team sponsored by the United States Postal Service. In whistle-blower cases, plaintiffs could be awarded triple damages, which could mean Armstrong could owe the government about $90 million if he loses. Johan Bruyneel, his former team manager, and Tailwind Sports are also defendants. Last week, the Justice Department joined Floyd Landis, one of Armstrong’s former teammates, as a plaintiff in the case, claiming that Armstrong defrauded the government because he was doping while on the team sponsored by the United States Postal Service. In whistle-blower cases, plaintiffs may be awarded triple damages, meaning that Armstrong could owe the government about $90 million if he loses. Johan Bruyneel, his former team manager, and Tailwind Sports are also defendants.
Armstrong is also involved in a lawsuit with an insurance company which paid him $12.1 million in bonuses for winning several Tours. Another lawsuit in which he is a defendant was filed by a British newspaper asking for him to repay the $1.5 million it gave him after he sued the paper for libel years ago, and won. Armstrong is also involved in a lawsuit with an insurance company that paid him $12.1 million in bonuses for winning several Tours. Another lawsuit in which he is a defendant was filed by a British newspaper, asking for him to repay the $1.5 million it gave him after he sued the paper for libel years ago and won.