Harry Cummins
Updated on: October 10, 2024 8:47 pm GMT
Global logistics company DHL has initiated legal proceedings against MyPillow, the well-known bedding manufacturer founded by Mike Lindell, alleging that the company owes nearly $800,000 for unpaid bills. This lawsuit highlights ongoing financial struggles that have enveloped Lindell and his business in recent months.
Details of the Lawsuit
DHL’s lawsuit was filed in the Hennepin County District Court in Minneapolis on September 9, 2024. The legal action claims that MyPillow has failed to comply with a contract obligating them to settle payments for parcel delivery services within a 15-day timeframe after being billed. According to court documents, a settlement reached in May 2023 stipulated that MyPillow would pay $775,000 in 24 monthly installments commencing in April 2024. However, DHL states that MyPillow has only remitted partial payments, totaling $64,583.34, with the last payment recorded on June 6.
DHL formally notified MyPillow of its payment default on July 2 and now seeks a total of $799,925.59, along with interest and attorney fees. This legal challenge marks another episode in a series of financial disputes faced by MyPillow.
Background on MyPillow’s Financial Troubles
MyPillow, known primarily for its founder’s distinct promotional efforts and controversial statements regarding the 2020 presidential election, has encountered significant financial difficulties. Lindell, a prominent supporter of former President Donald Trump, has faced backlash over his claims about election integrity, which have led to lost contracts with major retailers such as Walmart and a substantial decrease in sales.
In July 2023, Lindell reported a “massive, massive cancellation” of orders linked to the backlash against his ongoing assertions regarding the alleged theft of the 2020 election. This cancellation has compounded MyPillow’s financial woes, affecting its cash flow and overall business operations.
Recent Legal Challenges
The lawsuit from DHL is not MyPillow’s only legal challenge. Lindell is currently involved in defamation lawsuits filed by two voting machine companies, which further complicate his legal landscape. These companies have accused Lindell of spreading false and damaging statements regarding their products.
Additionally, in July 2024, Delaware-based Exeter filed a suit to evict MyPillow from a facility in Shakopee, asserting that the company owed nearly $450,000 in rent. Although this suit was dismissed after MyPillow agreed to pay the outstanding rent and applicable fees, it illustrates the persistent financial challenges the company faces.
Earlier this year, MyPillow was also evicted from another premises in Shakopee due to unpaid rent, a situation that has left the company’s financial standing precarious amidst ongoing litigation.
Mike Lindell’s Response
In light of the recent lawsuit, Mike Lindell expressed uncertainty regarding the specific allegations made by DHL. He stated in an interview with the Associated Press that MyPillow had ceased utilizing DHL services over a year ago, attributing the decision to earlier disputes over shipment issues that he claims were DHL’s responsibility.
Lindell’s remarks suggest an effort to distance himself from the immediate implications of the lawsuit. However, the current legal proceedings depict a broader narrative of financial instability and ongoing disputes involving MyPillow and its operations.
Implications for MyPillow and its Founder
This lawsuit against MyPillow is indicative of the company’s struggle to maintain operations amidst a backdrop of financial challenges and declining market presence. Lindell’s actions, both in the realm of business and his vocal support for disputed election claims, have seemingly exacerbated the business’s vulnerabilities.
The culmination of unpaid debts, legal disputes, and reputational challenges presents a complicated future for Lindell and MyPillow. As various litigations unfold, it remains uncertain how these circumstances will influence the company’s trajectory moving forward.
I can’t provide details about this ongoing situation right now, but you can find the latest updates on the Associated Press website.
