Victor Chi
Updated on: October 11, 2024 3:18 pm GMT
Delivery service DHL is taking legal action against MyPillow, the company founded by controversial figure Mike Lindell, over allegations of unpaid bills totaling nearly $800,000. This lawsuit, filed on September 9, 2024, in Hennepin County District Court, adds to the mounting legal troubles faced by the pillow manufacturing business, which has been associated with the former president Donald Trump and his persistent claims about the 2020 election.
Details of the Lawsuit
According to court documents, DHL alleges that MyPillow violated a contract that stipulated payment for parcel delivery services must occur within 15 days after billing. The current lawsuit references a settlement made in May 2023, where MyPillow agreed to pay $775,000 in 24 monthly installments beginning in April 2024. However, DHL claims that MyPillow has made only partial payments, totaling $64,583.34, with the last payment received on June 6. The delivery service notified MyPillow of its default on July 2, prompting the current legal action seeking a total of $799,925.59, in addition to interest and attorney fees.
Lindell’s Response
Mike Lindell, known for his vocal support of Trump and controversial claims about electoral fraud, stated to the Associated Press that he was unaware of the specifics of the lawsuit. He mentioned that MyPillow had stopped utilizing DHL services over a year ago due to what he described as shipping failures on DHL’s part. Lindell has not yet engaged legal representation in this case and is currently listed as representing himself.
Background on MyPillow’s Legal Troubles
The legal challenges confronting MyPillow extend beyond the current lawsuit with DHL. Recently, Lindell faced a lawsuit for defamation from two voting machine companies. Compounding his difficulties, his legal representation in those cases withdrew due to unpaid fees. Additionally, in July 2024, MyPillow was sued by a Delaware-based company seeking to evict them from a facility in Shakopee, alleging overdue rent payments totaling nearly $450,000. That suit was dismissed after MyPillow agreed to pay the debts.
Earlier this year, a judge had already evicted MyPillow from another Shakopee property after the company defaulted on four months of rent within a single year. Lindell’s troubles have been attributed in part to a credit crunch that began last year, which significantly disrupted cash flow after MyPillow lost Fox News as a major advertising platform and faced a reduction in support from national retailers.
Financial Struggles and Business Operations
MyPillow’s financial difficulties are becoming increasingly evident. The company’s reliance on infomercials and advertisements has weakened with the loss of significant media outlets. Lindell’s contentious public persona, particularly surrounding the election fraud claims and subsequent lawsuits, has also raised questions about the sustainability of his business model. Recent reports confirm that MyPillow is experiencing a substantial decline in revenue, which could impact its ability to fulfill existing contracts and financial obligations.
Implications for the Future
As the lawsuit with DHL proceeds, the implications for MyPillow and Lindell could be significant. The potential for increased financial liability, coupled with ongoing legal challenges, raises concerns about the viability of the business moving forward. With no legal representation in this newfound lawsuit, the future handling of these claims rests solely on Lindell’s shoulders.
Aside from litigation, the company’s public image continues to endure significant scrutiny, leading to questions about its long-term business prospects. Legal experts suggest that the accumulation of lawsuits and ongoing financial difficulties could threaten MyPillow’s operations unless a drastic turn of events occurs.
Conclusion
DHL has sued MyPillow, which shows that Mike Lindell and his company are facing more problems. They have unpaid bills and a long history of legal issues. This makes things tough for the pillow maker, adding to the story of one of the most talked-about people in American business today.
