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MyPillow’s financial woes escalate
In a shocking turn of events, MyPillow CEO Mike Lindell is facing a lawsuit from FedEx, claiming he owes nearly $9 million in delivery fees. This legal battle, which was filed in a Memphis federal court, highlights the ongoing financial struggles of Lindell’s company.
The lawsuit alleges breach of contract, with FedEx stating that MyPillow failed to pay $8.8 million, a significant amount that has raised eyebrows in the business community.
The relationship between MyPillow and FedEx began in February 2021, but by December of the same year, FedEx had halted all shipments of MyPillow products due to nonpayment.
Court documents reveal that at that time, Lindell’s company owed approximately $8.5 million, primarily in late fees. This situation paints a troubling picture of a company that once thrived but is now grappling with severe cash flow issues.
Legal battles compound MyPillow’s challenges
This lawsuit is just one of many legal challenges facing Lindell and MyPillow. Earlier this year, a Minnesota judge ruled that MyPillow must pay nearly $778,000 to DHL for unpaid bills. The company had agreed to pay $550,000 in October but failed to fulfill that obligation.
Lindell’s defense in this case was that MyPillow had stopped using DHL’s services over a year ago due to dissatisfaction with their shipping practices.
Moreover, Lindell is embroiled in defamation lawsuits filed by two voting technology firms, Dominion Voting Systems and Smartmatic, stemming from his controversial claims about the 2020 presidential election.
These legal battles have only intensified, especially after Lindell’s attorneys withdrew from the case last year due to unpaid legal fees, further complicating his defense.
The impact of lost revenue on MyPillow
MyPillow’s financial difficulties have been exacerbated by the loss of major revenue streams.
The company faced a significant blow when Fox News stopped airing its commercials, leading to a sharp decline in sales. Additionally, several national retailers have ceased carrying MyPillow products, further straining the company’s already fragile cash flow.
In February, Lindell suffered another setback when a judge upheld a $5 million arbitration award to a software expert who successfully disproved Lindell’s claims of Chinese interference in the 2020 election. This series of legal and financial challenges paints a grim picture for MyPillow, raising questions about the future of the company and its controversial CEO.
