Mike Lindell, the CEO of MyPillow and a staunch ally of former President Donald Trump, is facing a legal battle with FedEx over nearly $9 million in unpaid delivery and late fees.
According to a lawsuit recently filed by the shipping giant, MyPillow’s failure to settle its outstanding balance constitutes a breach of contract. This latest lawsuit adds to a series of financial and legal challenges that Lindell has been dealing with in recent years.
The Financial Dispute Between MyPillow and FedEx
The relationship between MyPillow and FedEx began in February 2021, with FedEx providing shipping services for the company’s products. However, over time, MyPillow accumulated a significant debt, which has now reached $8.8 million.
According to court documents, FedEx reviewed its business relationship with MyPillow in 2024, and since then, the company has been slow to pay its bills.
By December, FedEx had stopped shipping MyPillow’s products due to non-payment, at which point the amount owed was $8.5 million. The current figure, which has risen due to late fees, reflects the extent of Lindell’s financial troubles.
FedEx asserts that MyPillow’s failure to pay for shipping services is a direct violation of their contract. As a result, the company is seeking legal intervention to recover the unpaid amount. This lawsuit is another indication of MyPillow’s financial struggles, which have been exacerbated by a decline in advertising revenue and retail partnerships in recent years.
Ongoing Legal and Financial Challenges
This is not the first time MyPillow has been taken to court over unpaid bills. In January 2024, a Minnesota judge ordered MyPillow to pay nearly $778,000 in unpaid bills and additional costs to DHL, another major shipping company.
The court ruling included over $48,000 in interest and more than $4,800 in attorney fees for DHL. The lawsuit was the result of MyPillow failing to fulfill an agreement to pay DHL $550,000, despite an earlier commitment made in October 2023.
Lindell, known for his vocal support of former President Trump and his promotion of election conspiracy theories, has attributed MyPillow’s financial troubles to external factors.
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He has claimed that MyPillow stopped using DHL over a year ago due to disputes over shipments, placing the blame on the shipping provider rather than acknowledging any internal financial mismanagement.
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Beyond the shipping disputes, Lindell is also entangled in defamation lawsuits from Dominion Voting Systems and Smartmatic. Both companies allege that Lindell spread false claims about their voting machines being involved in election fraud.
These lawsuits have led to significant legal expenses, with Lindell’s own attorneys withdrawing from the cases due to unpaid legal fees. The defamation suits remain ongoing, adding to the financial strain on MyPillow.
The Impact of MyPillow’s Financial Woes
MyPillow’s cash flow problems became more apparent in 2023 when the company lost major advertising partnerships, including with Fox News.
The loss of exposure on one of its primary advertising platforms dealt a severe blow to MyPillow’s revenue. Additionally, major national retailers distanced themselves from the company, further contributing to the decline in sales.
Lindell’s attempts to generate alternative revenue streams have also faced setbacks. In February 2024, a judge upheld a $5 million arbitration award to a software engineer who successfully challenged Lindell’s claims that China interfered in the 2020 election. This ruling added another financial burden to Lindell’s already struggling company.
With mounting legal battles, declining revenue, and an increasing number of creditors demanding payment, MyPillow’s future remains uncertain.
The lawsuit filed by FedEx serves as another indicator of the company’s financial instability. If MyPillow is unable to resolve these disputes and pay its debts, it may face further legal consequences, potentially leading to bankruptcy or other severe financial repercussions.
As the case between FedEx and MyPillow progresses, it remains to be seen whether Lindell can navigate these challenges or if his company will continue its downward financial spiral.
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