MyPillow CEO Mike Lindell Accuses Corporate Payday Lender of Deception
MyPillow and its CEO, Mike Lindell, have filed a lawsuit against a corporate payday lender, alleging that they were deceived into borrowing $1.6 million at a 409% annual interest rate. The lawsuit claims that Cobalt Funding Solutions and Streamline Advance, a company involved in the loan, engaged in racketeering by extending a high-interest merchant cash advance to MyPillow, a “cash-strapped business that needed funds quickly.”
According to the lawsuit, the agreement to borrow the nearly $1.6 million was stacked against MyPillow and risked ruining the company. This is at least the third case filed in recent months involving MyPillow and merchant cash advances. In October, a company called Lifetime Funding sued Lindell and his companies for defaulting on a $600,000 advance, while another company, Shine Capital Group, filed a suit saying they defaulted on a $2 million deal signed in July.
MyPillow has been struggling financially for years, borrowing $10 million in 2022 and being dumped by lawyers after they couldn’t pay their legal bills. Lindell has also been sued several times related to his political claims, including a $5 million debt to a man who won his “Prove Mike Wrong” contest.
The use of merchant cash advances, typically used by struggling businesses with no other options, is a sign that the situation has worsened for MyPillow. Lindell has said he doesn’t have any money, and his company has been struggling to stay afloat. The lawsuit is a latest sign of financial distress for the far-right pillow salesman.