Lindell was previously ordered to pay $5 million to a software developer who challenged his claims of foreign interference in the 2020 election.
A federal appeals court ruled Wednesday in favor of MyPillow CEO Mike Lindell, overturning an earlier arbitration decision that ordered him to pay $5 million to a software developer who challenged his claims of foreign interference in the 2020 election.
A three-judge panel for the 8th US Circuit Court of Appeals issued a unanimous decision that determined the arbitration panel exceeded its authority.
“Fair or not, agreed-to contract terms may not be modified by the panel or by this court,” US Circuit Judge James Loken wrote in the 12-page decision.
In 2021, Lindell hosted a "Cyber Symposium" where he claimed data showed Chinese election interference in the 2020 election. Lindell offered $5 million if someone could prove the data was "unequivocally" not related to the election. This prompted software developer Robert Zeidman to issue a 15-page report against the data.
While the challenge judges ruled he did not meet the standards required for the $5 million, an arbitration panel later ruled that Zeidman is entitled to the prize. The panel found that Zeidman successfully proved that Lindell's data was not election data.
However, the appeals court has now ordered a lower court to immediately wipe the $5 million award. Loken said the judges found that the panel had "effectively amended the unambiguous Challenge contract when it used extrinsic evidence to require that the data provided was packet capture data, thereby violating established principles of Minnesota contract law and our arbitration precedents."
“This is vindication. This opens a door that no man can shut. I am so excited. I mean, this is an answer to prayer,” Lindell said in an interview with The Hill.
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