MyPillow Slammed with $777K Fine Over Unpaid DHL Shipping Fees – What Went Wrong?

A Minnesota court has ruled that MyPillow, founded by CEO Mike Lindell, must pay nearly $800,000 to shipping giant DHL for an unpaid balance. The judgment, issued by Judge Susan Burke in December, found MyPillow responsible for the $777,730 owed after failing to meet its payment obligations.

Unpaid Bills and Voided Agreements

Court records reveal that MyPillow entered a payment agreement with DHL in April 2023, but the company managed to make only two payments before defaulting. The agreement stipulated a $550,000 settlement payment due in October, which MyPillow failed to fulfill. Consequently, the settlement was nullified, leaving the company liable for the entire outstanding amount. This financial setback is not the first for MyPillow, which has been grappling with cash flow issues. The company has faced eviction filings over unpaid rent and described itself as “cash-strapped” in various lawsuits, including disputes over high-interest loans from merchant cash advance companies.

Legal Challenges and Defamation Lawsuits

In addition to its financial woes, MyPillow and Lindell are mired in numerous legal battles, many stemming from Lindell’s claims of election fraud.

1. Eric Coomer vs. Lindell and MyPillow: Eric Coomer, a former Dominion Voting Systems employee, has filed a defamation lawsuit against Lindell. He alleges that Lindell’s statements have incited death threats against him. A jury trial for this case is scheduled for June 2, 2025.
2. Dominion Voting Systems Lawsuit: Dominion is seeking $1.3 billion in damages from Lindell for defamation related to allegations against its voting machines. Filing deadlines extend into late August 2025, but no trial date has been set.
3. Smartmatic Legal Action: Smartmatic, another voting technology company, has accused Lindell of failing to provide requested documents and sought contempt of court charges. Meanwhile, Lindell has filed for a summary judgment in his favor, with a hearing scheduled for January 28, 2025.

The “Prove Mike Wrong” Contest Dispute

Adding to Lindell’s legal troubles is a $5 million arbitration award resulting from his “Prove Mike Wrong” contest. The competition challenged participants to disprove data that Lindell claimed supported his election fraud accusations. A software developer successfully demonstrated that the data was unrelated to the 2020 election, leading to the arbitration award. Although a federal judge upheld the decision, Lindell is appealing the ruling in the Eighth Circuit Court of Appeals.

Mounting Pressures on MyPillow and Lindell

As MyPillow struggles with financial difficulties and legal entanglements, Lindell faces increasing personal and professional pressure. The challenges show no signs of easing, from unresolved defamation lawsuits to financial obligations. While these cases unfold, the future of MyPillow and its outspoken CEO remains uncertain, with significant legal and financial hurdles ahead.