MyPillow CEO and staunch Donald Trump supporter Mike Lindell has filed a third lawsuit against merchant cash advance lenders, alleging that his company was subjected to "unconscionable" loan terms, including an exorbitant 385% interest rate.
The lawsuit, filed last week in Carver County District Court, targets several named and unnamed defendants, claiming that a $2 million loan taken out in July 2024 was illegally structured to evade New York and Minnesota usury laws. Lindell alleges the agreement with Merchant Capital, which requires daily payments exceeding $41,000 and a total repayment of more than $3.91 million, was a predatory scheme disguised as a purchase of future receivables.
MyPillow contends, according to the 28-page complaint, that the transaction was fraudulently misrepresented and that no legitimate sale of receivables ever occurred. Instead, the lawsuit asserts that the agreement functioned as an illegal, high-interest loan that placed all financial risk on Lindell and his company.
"While couched as the purchase of future receivables, the terms and conditions of the MCA Agreement, as well as the Defendants' actions since that time, demonstrate that despite the disclaimers in the MCA Agreement, no sale of receipts ever took place," the filing states.
This latest lawsuit follows two similar complaints filed by Lindell in October and December 2024, as he continues to accuse the merchant cash advance industry of exploiting struggling businesses with usurious loan terms disguised under misleading contracts.
Lindell's legal team argues that the loan agreement should be deemed unenforceable, calling it a "sham" designed to circumvent regulatory protections.
Merchant Capital has not yet publicly responded to the lawsuit.
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