Mike Lindell Claims Financial Ruin Amid Refusal to Pay $56,000 Sanction to Smartmatic

MyPillow CEO Mike Lindell

MyPillow CEO Mike Lindell is facing mounting legal and financial troubles as he continues to refuse payment of a $56,369 court-ordered sanction to voting software company Smartmatic. The sanction was imposed over what the court deemed "frivolous" claims related to the 2020 U.S. presidential election. Lindell, who has publicly denied the legitimacy of the election results, cited complete financial collapse as the reason for his inability to pay.

During a motion hearing on Wednesday in the U.S. District Court in Washington, Lindell appeared via Zoom, emotionally pleading with Judge Carl Nichols to postpone the payment until a final judgment is issued in the ongoing case, which he has already lost. “I'm in ruins,” Lindell said tearfully. “I borrowed everything I can. Nobody will lend me any money anymore. I can’t turn back time... but I will tell you, I don’t have any money.”

Last month, Smartmatic filed a motion to hold Lindell in contempt for failing to comply with the court’s sanction order. The company claims Lindell has been dodging payment for months. Lindell, in response, said he simply cannot afford to pay, blaming the situation on what he called "lawfare" for his attempts to "secure the election."

Lindell detailed a series of financial setbacks over the past few years. He claimed he was recently forced to lay off hundreds of MyPillow employees, lost several warehouse units, and now owes millions to the Internal Revenue Service for what he described as complications with COVID-era employee retention credits. He added that he now owns only two homes, which are in the process of being liquidated, and a truck. According to Lindell, he no longer has the capacity to follow through on a previously proposed plan to make monthly payments of $5,000.

Judge Nichols acknowledged Lindell's statements but noted that they are currently "non-verifiable representations." The judge ordered Lindell to submit, under seal, financial statements and supporting documents by Friday to verify his inability to pay. Lindell agreed to the request and stated, “I have nothing to hide,” adding that he wants Smartmatic to see the extent of his financial situation as well.

Smartmatic’s attorney expressed a preference for a lump sum payment but said the company would comply with the court’s directive.

The case is one of several lawsuits Lindell is facing for his role in promoting unproven election conspiracy theories, which have had lasting financial and reputational impacts on both him and his business.