FedEx Sues MyPillow for $8.8 Million in Unpaid Shipping Invoices, Citing Breach of Contract

Highlights

• FedEx alleges breach of contract by MyPillow

• $8.8 million in unpaid invoices and late fees claimed

• MyPillow account placed on cash-only basis, then terminated

• Lawsuit includes breach and unjust enrichment claims

• Comes amid broader financial and legal troubles for Lindell

Main Article

The Core Facts

In February 2025, FedEx filed a breach of contract lawsuit against MyPillow, Inc., in the U.S. District Court for the Western District of Tennessee. The shipping giant claims MyPillow owes $8,801,710.93 in unpaid shipping invoices, accumulated late fees, and penalties.

The suit arises from a February 2021 Transportation Services Agreement between the two companies. Under that agreement and the standard FedEx Service Guide, MyPillow was to pay invoices within 15 days and faced interest and penalties for late payments.

According to the complaint, beginning in September 2024, MyPillow began missing payments. Despite multiple promises to repay the mounting balance—some reportedly made personally by CEO Mike Lindell—no resolution was reached. By December 2024, FedEx had stopped providing shipping services and officially terminated the agreement in January 2025 after a 30-day payment demand went unmet.

The lawsuit includes two counts: breach of contract and, alternatively, unjust enrichment. FedEx seeks full recovery of the unpaid invoices, interest, attorney’s fees, and costs.

Background on Individuals

Mike Lindell, CEO of MyPillow and prominent political figure, is already embroiled in numerous legal disputes related to his claims about the 2020 presidential election. This shipping dispute with FedEx adds to his growing legal exposure.

FedEx Corporation, based in Memphis, Tennessee, is one of the largest logistics providers in the world and frequently enters high-value shipping contracts with commercial clients.

Legal Context

FedEx’s complaint relies on basic contract enforcement principles. It alleges that MyPillow failed to meet its contractual obligations under a written shipping services agreement. The agreement incorporated standard provisions for late fees and interest, and clearly outlined MyPillow’s obligation to pay for all services rendered to its shipping accounts.

The alternative claim of unjust enrichment is a fallback strategy. It asserts that even if a contract were found unenforceable or expired, FedEx still provided valuable services for which MyPillow was unjustly enriched by avoiding payment.

Key legal issues likely to emerge include:

• Accuracy and verification of the $8.8 million claim

• Potential defenses by MyPillow, such as breach by FedEx, improper billing, or financial hardship

• The enforceability of late fees and interest under Tennessee or Minnesota commercial law

• Whether FedEx complied with all notice and termination procedures under the contract

Broader Business & Legal Implications

This case amplifies growing concerns over MyPillow’s financial health. The company is already facing adverse rulings and damages in defamation lawsuits from Smartmatic and Dominion Voting Systems. MyPillow also previously lost a court case to DHL involving unpaid delivery fees totaling $778,000.

A ruling against MyPillow in the FedEx matter could further constrain the company’s cash flow and jeopardize its legal strategy in other ongoing litigation.

For FedEx, this lawsuit signals the company’s willingness to pursue major delinquent accounts through litigation when resolution efforts fail, even when politically charged figures are involved.

What’s Next

The case will proceed with service of process, followed by a likely motion to dismiss or answer by MyPillow. Discovery could expose the internal communications about the payment failures and any efforts made by Lindell or company executives to resolve the debt.

Settlement is possible but may hinge on MyPillow’s ability to repay or restructure the debt. If litigation proceeds, FedEx is expected to seek summary judgment, as the claims are based largely on accounting records and signed contracts.

Lindell’s legal team could attempt to consolidate or delay proceedings due to his other lawsuits, but courts often treat commercial debt cases independently and on a fast track.

Conclusion

The $8.8 million lawsuit filed by FedEx adds another layer of legal and financial pressure on MyPillow and CEO Mike Lindell. As Lindell grapples with high-stakes defamation cases, this commercial dispute underscores the broader financial risks facing his business operations. Courts will now decide whether FedEx’s documentation and claim withstand scrutiny, or whether MyPillow can mount an effective defense.