Mike Lindell says cash-strapped MyPillow took out a $1.6 million loan from a lender at 409% interest

• MyPillow and Mike Lindell say in a lawsuit that they were defrauded by a corporate payday lender.

• The lawsuit says MyPillow borrowed $1.6 million at an annual interest rate of 409%.

• Lindell has said he has no money, and at least three MyPillow loans have ended up in court.

Mike Lindell, the owner of MyPillow, says his company was tricked into borrowing $1.6 million at an annual interest rate of 409%, the latest sign of financial distress for the far-right pillow seller.

Lindell, MyPillow and 18 other corporate entities allege that Cobalt Funding Solutions and another company involved in the loan, Streamline Advance, engaged in racketeering by extending a high-interest merchant cash advance — essentially a quick business loan .

The lawsuit says Cobalt, Streamline and two men named as defendants “took advantage” of MyPillow, “a cash-strapped company in urgent need of funds.” It adds that the September deal to borrow nearly $1.6 million was stacked against MyPillow and risked destroying the company.

The lawsuit was first reported by Law.com on Tuesday.

It’s at least the third case filed in recent months involving MyPillow and cash advances. In October, a company called Lifetime Funding said Lindell and his companies defaulted on a $600,000 advance barely a month after borrowing it. About a week later, another company, Shine Capital Group, filed suit, saying it breached a $2 million agreement signed in July.

Both cases are pending in New York. MyPillow has requested dismissal of the Lifetime lawsuit, arguing that the deal’s interest rate was so high that it violated state law.

MyPillow and Lindell have been battling for years. The borrowed 10 million in 2022 and was dumped by lawyers after they could not pay their legal bills. Earlier this year, Lindell told NBC News he had no money and was down to his house and truck.

The use of merchant cash advances, typically used by struggling businesses with no other options, is a sign that the situation has worsened.

Lindell has also been sued several times in connection with his political demands. He has insisted for years that the 2020 election was stolen from Donald Trump and owes more than $5 million to a man who won his “Prove Mike wrong” competition by showing that his supposed evidence that the election was stolen actually proved nothing.

Lindell, Streamline and Cobalt did not immediately respond to requests for comment.

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