'I'm in ruins.' Teary Eyed Mike Lindell Tells Judge Breaks Over Financial "Insolvency"

Once worth hundreds of millions of dollars and hailed as a rags-to-riches American success story, MyPillow CEO Mike Lindell now says he is flat broke. In an emotional Zoom appearance before a federal judge this week, Lindell wiped away tears as he declared, "I'm in ruins", while pleading for leniency over unpaid legal sanctions.

Lindell told Judge Carl Nichols that he can no longer afford to pay a $56,000 court-ordered penalty to voting software company Smartmatic. The payment stems from sanctions over "frivolous" election-related claims — part of the defamation lawsuits that have devastated Lindell's personal finances and his once-thriving business.

"I borrowed everything I can," Lindell said. "Nobody will lend me any money anymore… I don't have any money." The judge gave Lindell until Friday to submit sealed financial records proving his insolvency, stating that his on-screen testimony amounts to "non-verifiable representation" until documentation is provided.

From Pillows to Politics

Lindell's fall from grace is one of the most dramatic financial collapses in recent American business history. For years, he built MyPillow into a direct-to-consumer juggernaut. The company reportedly generated over $110 million per year in gross revenue at its peak, powered by Lindell's constant infomercials and retail partnerships with Walmart, Bed Bath & Beyond, and others. His success earned him both a fortune, once estimated between $100 and $300 million based on the enterprise value of MyPillow, and a quirky kind of fame.

But Lindell's decision to go all-in on claims that the 2020 election was stolen from Donald Trump began a swift unraveling. He spent tens of millions of dollars of his personal fortune trying to prove widespread fraud, including launching a social media platform, Frank Social, that reportedly burned $1 million per month at one point.

He also issued a public challenge offering $5 million to anyone who could disprove his so-called election "packet data." A man named Robert Zeidman took up the challenge, filed a 15-page technical rebuttal, and ultimately won the money in court-mandated arbitration. Lindell tried to avoid paying, arguing the contest was poorly worded and handled through a corporate entity, but a judge reaffirmed the ruling in early 2024.

Legal Bills and Retail Blacklisting

Lindell's mounting legal troubles didn't end there. He was sued for $1.3 billion by Dominion Voting Systems and separately by Smartmatic, both alleging defamation tied to his false claims about voting machines being used to rig the election. The cost of defending himself in court has been staggering.

In late 2023, Lindell's longtime lawyers at Parker Daniels Kibort and Lewin & Lewin filed to withdraw from the case, claiming he owed them "millions of dollars" and had no means to pay moving forward. In their court filing, the firms warned that continuing to represent Lindell "could threaten the very existence of the firm." Lindell didn't dispute their withdrawal, telling Steve Bannon's "War Room" podcast, "We can't pay. There's no money left to pay them."

The damage extended to MyPillow's operations. Retail partners began distancing themselves from Lindell amid his political firestorm. Walmart, which had been one of MyPillow's largest distributors, dropped the brand in June 2022. With major store chains pulling out and advertising channels like Fox News cutting ties over payment disputes, Lindell claimed MyPillow's annual revenue fell from $110 million to just $5 million — a 95% collapse.

(Photo by Chip Somodevilla/Getty Images)

"We've Lost Everything"

In various interviews, Lindell has described his financial situation in stark terms. "We've lost everything. Every dime. All of it is gone," he told NBC in late 2023. He admitted that he poured an estimated $25–50 million of his personal fortune into efforts to challenge the 2020 election results.

At this week's court hearing, he added new details. He says he had to lay off hundreds of MyPillow employees, lost warehouse facilities, and is now behind on payments to the IRS over a disputed COVID-era employee retention credit. As of April 2025, he claims to own nothing but "two homes and a truck", all of which are reportedly in the process of being liquidated.

Even a previous agreement to pay Smartmatic in $5,000 monthly installments is now beyond his reach. "I can't turn back time," Lindell told the judge. "But I will tell you, I don't have any money."

What Comes Next?

Judge Carl Nichols did not immediately sanction Lindell further but required him to submit complete financial statements under seal by the end of the week. If the court accepts Lindell's claims of insolvency, it may influence how future financial judgments, including the looming billion-dollar defamation cases, are enforced.

Meanwhile, Smartmatic's attorneys have said they would prefer an immediate lump-sum payment of the $56,000 sanction but will abide by the judge's process. Lindell has agreed to cooperate, telling the court, "I have nothing to hide… I want Smartmatic to see the financial situation I'm in."

It's a stunning reversal for a man who not long ago was a conservative media darling, White House visitor, and self-made multi-millionaire. Today, Mike Lindell is out of lawyers, out of money, and increasingly, out of time.