• MyPillow CEO Mike Lindell announced Monday that his company filed a $1.6 billion lawsuit against Dominion Voting Systems.
• Dominion is suing MyPillow and Lindell, a loyal supporter of Donald Trump, in a $1.3 billion defamation lawsuit.
• Dominion accuses Lindell of harming the company's reputation by spreading the false claim that it rigged the 2020 election for President Joe Biden.

MyPillow, the bedding company led by the pro-Trump CEO Mike Lindell, on Monday filed a $1.6 billion lawsuit against Dominion Voting Systems, which is currently suing Lindell and his business for defamation.

"This is a free-speech case. This is a First Amendment case," Lindell said on a livestreamed broadcast announcing the lawsuit.

The election-technology firm Dominion sued MyPillow and Lindell in February, accusing them of spreading the false claim that the company rigged the 2020 election for President Joe Biden by manipulating votes. Former President Donald Trump's campaign and his allies lost dozens of lawsuits in their sweeping effort to overturn key states' election results and flip the outcome of the race.

Dominion is seeking more than $1.3 billion in punitive and compensatory damages, saying the "viral disinformation campaign" spread by Lindell and others has "irreparably damaged" the company's reputation. Dominion has filed similar lawsuits against Trump's lawyer Rudy Giuliani, attorney Sidney Powell and Fox News.

The new complaint from MyPillow, filed in Minnesota federal court, accuses Dominion of waging an "illegal campaign to punish and silence their critics."

MyPillow's lawsuit also makes a distinction between Lindell and his company, arguing, "MyPillow has not engaged in discussion about the 2020 election."

"In making these statements, Lindell spoke for himself, not MyPillow," the lawsuit says.

Andrew Parker, a lawyer for MyPillow, denied that MyPillow's court action constituted a countersuit against Dominion.

But the lawsuit itself says it is being brought "to remedy the grave harm that has been suffered by MyPillow as a result of Dominion's suppression of speech and attacks on the Company."

"This is a meritless retaliatory lawsuit, filed by MyPillow to try to distract from the harm it caused to Dominion," said Stephen Shackelford, legal counsel for Dominion, in a statement to CNBC.

Dominion has signaled that additional lawsuits could be on the way. Shackelford said last month that the company has not "ruled out any parties, including individual agents of Fox News."

MyPillow on Monday morning filed a motion to dismiss Dominion's defamation case.