MyPillow founder Mike Lindell has once again found himself staring down the wrong end of a seven-figure lawsuit, this time being dragged into court by a merchant cash advance firm that accuses the bedding magnate and election fraud conspiracist of ducking out on nearly $1.5 million in outstanding debt.
Cobalt Funding Solutions, a New York City-based “alternative capital provider,” makes loans to businesses against their future sales, taking a set portion of a company’s revenues until the principal is repaid, plus a handsome premium. Lindell, for his part, has called the entire future receivables industry a “sham,” and drew first blood against Cobalt earlier this month with a lawsuit claiming the whopping 409 annual percentage rate it charged him while in a desperate cash crunch was “illegal,” “usurious,” and a legalized form of loan sharking.
Now, Cobalt has returned fire in a civil complaint filed last Friday in state court. Although the 63-year-old MAGA fan has stopped paying, the complaint says he has “continued to generate and collect millions of dollars in revenue from sales of, among other things, Pillows and bedding accessories since October 18, 2024.”
Reached by phone on Monday, Lindell told The Independent he had not been previously aware that Cobalt was countersuing and had not yet reviewed any of the court filings.
He claimed, without providing specifics, that Cobalt has “gotten in trouble before” for its business practices, and that “there was a lot of stuff that went around with that,” but that “they keep doing what they’re doing.” However, Lindell continued, “I don’t know what it all involves.”
As for Cobalt’s lawsuit against him and MyPillow, Lindell said, “I just don’t want to get out in front of things here. The lawyers are handling that. It’s not my priority right now, I’m trying to run companies and get rid of the electronic voting machines. That’s my focus.”
