Eighth Circuit Court of Appeals rules for Mike Lindell over $5M election fraud contest

An Eighth Circuit Court of Appeals panel ruled for MyPillow CEO Mike Lindell in his lawsuit to avoid paying $5 million to a software developer who competed in an election fraud contest.

The three-judge panel unanimously decided on Wednesday that an arbitration panel exceeded its power by changing unambiguous contract terms to award the developer the $5 million prize.

In 2021, Lindell hosted a “Cyber Symposium” in South Dakota where he showed data that claimed there was Chinese election interference in the 2020 presidential election, The Hill news outlet reported. Lindell offered $5 million to whoever could prove the data was “unequivocally” not related to the 2020 election.

Robert Zeidman, a software developer, produced a 15-page report rebuffing Lindell's data. However, the judges for the challenge "concluded Zeidman had not provided sufficient proof that the data was not unequivocally election data and denied his claim for the $5 million reward," according to the appeals court's ruling.

As allowed by the contest's rules, Zeidman brought the dispute into arbitration, and the arbitration panel unanimously ruled in his favor following a hearing.

"The panel concluded the contract requirement that participants 'unequivocally' prove that the cyber data provided was not 'related to the November 2020 election' was unambiguous and Zeidman unequivocally proved the cyber data was not 'packet capture data,'" the appeals court wrote.

Zeidman then asked a district court to affirm the arbitration panel's decision to award him the $5 million, which Lindell fought.

"We conclude that the panel 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. Accordingly, we reverse the grant of Zeidman’s motion to confirm because 'the arbitrators exceeded their powers,'" according to the appeals court's ruling.

“Fair or not, agreed-to contract terms may not be modified by the panel or by this court,” U.S. Circuit Judge James Loken, a George H. W. Bush appointee, wrote in the opinion.

Circuit Judges Lavenski Smith, a George W. Bush appointee, and L. Steven Grasz, a Donald Trump appointee, ruled with Loken.

The judges instructed a lower court to immediately wipe the $5 million arbitration award or conduct further proceedings in accordance with the appeals court's reversal. 

Lindell told The Hill that the lawsuit was a “setup.”

“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.

Zeidman's attorney, Brian Glasser, defended the arbitration decision to The Hill.

“Your readers can judge for themselves if the Eight Circuit’s decision today is more persuasive, or rings in truth louder, than the unanimous contrary decision of three arbitrators who heard all the evidence, including one appointed by Mr. Lindell,” Glasser said.