Armstrong faces 10 mln-dollar damages payout post losing lawsuit against insurance firm

Disgraced former American cyclist Lance Armstrong has lost a lawsuit with an insurance firm and now has to pay 10 million dollars in damages.

Armstrong had received 7.5 million dollars in payments from insurance firm SCA Promotions Inclusive in 2006 relating to his seven Tour de France victories.

Armstrong admitted to doping and was found to have lied in proceedings, the BBC reported.

SCA said that the award, which must be paid directly to them, is believed to be the largest award of sanctions assessed against an individual in American judicial history.

SCA initially refused to pay out money covering the bonus for Armstrong's sixth Tour de France win in 2004. The former cyclist 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.

Armstrong was awarded 2.5 million dollars in damages and costs.

However, the firm said that SCA's dispute with Armstrong is not over, adding that it has a currently pending lawsuit in Dallas state district court where it is pursuing additional claims against the former US cyclist and his agent Bill Stapleton.

In 2012, the United States Anti-Doping Agency issued Armstrong with a life ban and stripped him of all seven Tour de France titles.

SCA Promotions president and founder Bob Hamman said that it is hard to describe how much harm Armstrong's web of lies caused SCA but added this was a good first start towards repairing that damage.