Lance Armstrong must pay $10 million (£6.5 million/€9 million) worth of damages to insurance firm SCA Promotions after an arbitration panel ruled in the companies favour, following a lawsuit dating back over ten years.
Armstrong sued the insurance firm in 2004 after they withheld bonus payments relating to his Tour de France victories, due to suspicions that the cyclist was doping to win races.
The case was brought before an arbitration panel and following the case, which included what is now known to be a false testimony by Armstrong, the panel ruled in the Americans favour with the insurance company forced to pay the cyclist $7.5 million (£4.9 million/€6.6 million).
Following the United States Anti-Doping Agency's decision in 2012 to give Armstrong a lifetime ban from sport, subsequently leading to him being stripped of all seven of his Tour de France victories, the cyclist confessed to use of performance enhancing drugs in a television interview with Oprah Winfrey.
In light of his confession SCA Promotions began legal proceedings to have the case reopened, it having become clear Armstrong had lied under oath during the initial case about doping.
Following the announcement that Armstrong would have to pay damages to the insurance company, SCA Promotions president and founder Bob Hamman said: "It is hard to describe how much harm Lance Armstrong's web of lies caused SCA but this is a good first start towards repairing that damage."
SCA Promotions have claimed the award, which much be paid directly to the company, is the largest sanction assessed against an individual in American judicial history.
The company said in a statement: "According to the arbitrators' written ruling, the sanctions award punishes Armstrong for 'an unparalleled pageant of international perjury, fraud and conspiracy'.
"SCA's dispute with Armstrong is not over.
"It has a currently pending lawsuit in Dallas state district court where it is pursuing additional claims against Lance Armstrong and Bill Stapleton (Armstrong's agent)."
Armstrong also faces a lawsuit from the United States Federal Government who are seeking $96 million (£57 million/€70 million) in damages, with the suit, originally brought up by his former teammate Floyd Landis, alleging the misuse of sponsorship money.
Since his confession Armstrong has also settled cases with Nebraska based firm Acceptance Insurance and The Sunday Times newspaper in London.
Contact the writer of this story at [email protected]
June 2014: Armstrong loses bid to have US Government lawsuit thrown out
June 2014: Armstrong to testify this month in US Federal Government $96 million lawsuit
April 2014: Armstrong fails in attempt to block arbitration panel review of $12million in bonus payments
November 2013: Armstrong settles another multi-million dollar lawsuit
August 2013: Disgraced Armstrong reaches confidential compensation settlement with Sunday Times