Overview of the Lawsuit
Mike Lindell, the creator of MyPillow and a well-known advocate of the late President Donald Trump, is embroiled in yet another court battle. This time, global package delivery giant DHL has filed a lawsuit against MyPillow, alleging the company owes nearly $800,000 in unpaid bills for parcel delivery services. The lawsuit, filed in Hennepin County District Court in Minneapolis, adds to Lindell’s growing list of legal and financial challenges.
DHL alleges in the complaint that MyPillow has not complied with the conditions of a settlement reached in May 2023.This settlement required MyPillow to pay off a debt of $775,000 through 24 monthly installments, starting in April of 2024. However, MyPillow made only two payments, totaling $64,583.34, with the last payment made on June 6. DHL is now seeking $799,925.59, plus interest and attorney fees.
MyPillow’s Financial Struggles
This lawsuit is just the latest in a series of financial and legal troubles for MyPillow. Mike Lindell’s company has been struggling with cash flow issues, partly due to losing major advertising platforms like Fox News and being dropped by several national retailers. These losses occurred after Lindell’s outspoken support for false claims about the 2020 U.S. Presidential election, which led to widespread backlash against both him and his company.
Lindell has also been involved in multiple high-profile legal battles. He is currently facing defamation lawsuits from voting machine companies Dominion and Smartmatic, who allege that Lindell spread false information claiming their machines were involved in election fraud. Dominion is seeking a staggering $1.3 billion in damages from Lindell.
To make matters worse, Lindell was also forced to pay $5 million to Robert Zeidman, a software expert, who refuted Lindell’s allegations of Chinese meddling in the 2020 election. This stemmed from a 2021 symposium where Lindell issued a challenge offering $5 million to anyone who could debunk his data. When Zeidman successfully did so, Lindell refused to pay, leading to a court battle where Zeidman emerged victorious.
Seriously, Lindell???
— OutsideTheMatrix aka QRASH (@PaTrumpGirl) September 13, 2024
DHL sues MyPillow, alleging company founded by Mike Lindell owes $800,000.
Package delivery company DHL is suing MyPillow, alleging the company synonymous with its founder, chief pitchman and election denier Mike Lindell owes nearly $800,000 for unpaid… pic.twitter.com/HLFGC5QZi5
Details of the DHL Agreement
DHL’s lawsuit provides further insight into MyPillow’s financial challenges. According to court documents, the two companies had been in a business relationship since 2015, when they signed an agreement that required MyPillow to spend approximately $4 million annually on delivery services. Additionally, MyPillow was required by the terms of their contract to pay all delivery-related bills within a 15-day period.
By 2023, MyPillow was struggling to meet these obligations, prompting DHL to negotiate a settlement that allowed the company to pay off an outstanding debt of $818,493 through monthly payments of $32,291.67. Although MyPillow made the first two payments on time, it quickly fell into default, leading DHL to notify the company in July that it was in breach of their agreement.
When MyPillow failed to make another payment, DHL initiated legal proceedings, seeking not only the outstanding amount but also 18% annual interest and coverage of legal fees.
Lindell’s Response
The man known as “the MyPillow guy,” Mike Lindell, expressed surprise at the complaint. Speaking to the Associated Press, Lindell claimed that he was unaware of the details of the lawsuit but suggested that his company had stopped using DHL over a year ago due to what he described as issues with shipment deliveries.
However, the facts laid out in DHL’s lawsuit indicate that the two companies were still engaged in a financial agreement as recently as April 2024, when MyPillow began making payments on the debt. This discrepancy raises further questions about Lindell’s handling of the situation and the company’s financial health.
Previous Legal and Financial Issues
This DHL lawsuit is not the first time MyPillow has found itself in financial hot water. In July 2023, the company faced eviction from one of its facilities in Shakopee, Minnesota, due to nearly $450,000 in overdue rent. Although that case was eventually dismissed after MyPillow made the necessary payments, the company was evicted from another building earlier in the year after defaulting on four months of rent.
The financial strain on MyPillow has been growing since late 2022, when the company lost major advertising partnerships and retail deals. Lindell has openly admitted that the company is facing a credit crunch, which has made it difficult to stay afloat amid the ongoing legal battles.
Impact on MyPillow’s Business
The continued legal challenges, along with Lindell’s ongoing involvement in election-related controversies, have undoubtedly impacted MyPillow’s business operations. The company’s reputation has taken a significant hit, and the loss of key advertising platforms has made it difficult to maintain cash flow.
In addition to the lawsuits from Dominion and Smartmatic, which could result in substantial financial damages, Lindell’s unwillingness to settle or pay debts on time has further strained the company’s financial standing. In 2023, Lindell famously told the Star Tribune, “I would never settle in any lawsuit. You don’t settle for something where you’ve done nothing wrong.”
However, with mounting debt and multiple lawsuits in progress, MyPillow’s future remains uncertain.
The DHL lawsuit is just one part of a much larger series of legal and financial problems facing Mike Lindell and MyPillow. The company’s ongoing disputes with suppliers, creditors, and even former contest participants have cast a shadow over its business operations. As Lindell continues to fight multiple legal battles, the future of MyPillow—and its ability to meet financial obligations—remains uncertain.
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