The International Cycling Union is being sued by sports clothing sponsor Skins after they lost confidence in the governing body following the doping revelations surrounding American cyclist Lance Armstrong.
The 41-year-old was accused in a 1,000-page report by the United States Anti-Doping Agency of running "the most sophisticated, professionalised and successful doping programme the sport has ever seen".
The damning evidence prompted the UCI to strip the cyclist of his record seven Tour de France titles.
Skins chairman Jaimie Fuller said: "The events of the last several months have made it abundantly clear that world cycling has not been the sport the general public and the corporate partners thought it was.
"Consequently, as chairman of a company that has made a significant financial and emotional investment, I am acting in order to send a message to the UCI and its senior office bearers that gross mismanagement and betrayal of trust is completely unacceptable."
Meanwhile, cycling teams have been trying to stamp down on doping by parting ways with any cyclists or staff members who have been guilty of taking illegal performance enhancing drugs during their careers.