Mike Lindell Sues Over $1.6 Million Loan With 409% Interest Rate

The MyPillow CEO alleges predatory lending practices as his company faces mounting financial struggles and multiple lawsuits.

Mike Lindell, CEO of MyPillow, has filed a lawsuit in Minnesota against Cobalt Funding Solutions and Streamline Advance, alleging deceptive practices in a $1.6 million loan agreement.
The loan, structured as a merchant cash advance, carried an effective annual interest rate of 409%, requiring daily payments of over $45,000 for 50 days and a $125,000 upfront fee.
Lindell claims the loan terms were misrepresented and designed to circumvent usury laws, calling the agreement a 'sham' in the lawsuit.
MyPillow has been involved in at least two other lawsuits this year as defendants, accused of defaulting on loans worth $600,000 and $2 million, respectively.
The company, once generating $300 million annually, has faced financial decline after major retailers dropped its products, reportedly losing $100 million in sales since 2020.