Settlement with Yellowstone Capital regarding MCAs

The OAG also sued:

• Delta Bridge Funding, also known as Cloudfund, which took over Yellowstone’s business in May 2021
• individual members of management
• individuals called “funders” who worked directly with merchants 

This lawsuit is ongoing. The OAG has not settled with any of these parties to the lawsuit. We do not know when this lawsuit will be resolved.

• The settlement has been signed by all parties: OAG, the Yellowstone companies, and the related individuals.
• The settlement has been approved by the court and is now in effect.
• Under the settlement, all merchant debts to the Yellowstone companies are automatically canceled.
• Many court judgments that Yellowstone obtained against merchants have been vacated.
• Yellowstone has terminated UCC liens against merchants’ property upon request.
• Merchants who could be eligible for a settlement payment were sent a notice from Rust Consulting, the settlement administrator.  These merchants had an opportunity to submit a claim.

More information about vacating court judgments, terminating liens, and settlement payments is available in the corresponding FAQ sections.

To learn more about the settlement, read the Attorney General’s press release. For complete details about the settlement, read the consent order and judgment with Yellowstone and the Yellowstone officers.

Key updates will be posted on this web page.

Certain updates may be communicated by mail or email. To ensure you receive all communications, please provide your email address at the Rust website.

In the lawsuit, Yellowstone, Delta Bridge, and the individuals asked the court to dismiss all of the OAG’s claims

• The OAG opposed the requests, which are now pending before the court. We do not know when the court will rule on them.
• After the court rules on the requests, OAG will ask the court to rule on all remaining claims.
• Yellowstone is no longer part of the lawsuit, because it has agreed to the settlement. The lawsuit continues against Delta Bridge (Cloudfund) and the remaining individuals.
• For updates on the lawsuit, you can also check the court’s docket, which is public (case number 450750/2024).

• Check the top of your MCA contract and read the first paragraph of the contract. Sometimes the name at the top of the contract is a doing-business-as (DBA) name, and not the legal name.
• If you don’t have the contract, check old emails – but note that the person you were dealing with may have been an intermediary. The name of their business may be different from the company that actually provided the MCA.
• You can also check your business’s bank statement to see the name of the company debiting the account.
• To see if your MCA was issued by one of the Yellowstone companies, compare it to the list of Yellowstone companies.

For merchants with MCAs from any of the Yellowstone companies, the settlement does all of the following:

• automatically cancels all outstanding debt merchants owe to Yellowstone
• dismisses pending lawsuits against merchants
• vacates court judgments against some merchants
• terminates some UCC liens against merchants’ businesses and property

The settlement does not apply to MCAs with Delta Bridge or Cloudfund, or any other MCA company apart from the Yellowstone companies. See the full list. 

Merchants are only eligible for a settlement payment if they paid more to Yellowstone than they received, and filed a claim with Rust Consulting by January 9, 2026.

In March 2025 and October 2025, Rust Consulting, the settlement administrator, sent notices to merchants who could be eligible for a settlement payment. The notices informed merchants that they needed to submit a claim by January 9, 2026.

Now that the claim period has closed, Rust Consulting will review the claims and determine which merchants are eligible and how much they should receive. We expect to distribute the settlement payments in the coming months,

Once Rust Consulting determines the payment amounts, they will notify the merchants and mail checks to the address provided. Merchants will also receive an email to let them know that a check has been mailed to them. We will also update this website at that time.

• If you owed a balance to any of the Yellowstone companies for an MCA, 100% of your debt has been canceled under the settlement.
• If you entered a settlement with Yellowstone based on an MCA agreement, and still have a balance on the settlement amount, that is canceled too.
• Your debt is canceled – whether it’s your business that is in debt to Yellowstone or it’s you personally who is a guarantor of the debt.

• No. If you have an outstanding balance to any Yellowstone company, based on an MCA agreement, your debt is automatically canceled under the settlement.
• As part of the settlement, Yellowstone is prohibited from taking any action to collect the debt, or from selling your debt to anyone else to collect.

• If you are a merchant with an outstanding balance to Yellowstone, you should have received a notice from Rust that your debt was canceled.
• Rust sent these notifications on March 21, 2025, by mail and/or email, depending on the contact information Yellowstone had on file.

As part of the settlement with OAG, Yellowstone was required to vacate certain court judgments it had obtained against businesses based on an MCA.

In each county where Yellowstone had a judgment against a merchant, the court ordered the judgments vacated. The specific judgments vacated by the order were those that Yellowstone identified on a list it submitted to the court in each county.

Yellowstone also identified additional judgments to be vacated, based on information that merchants submitted in their settlement claim forms (the deadline to submit these claim forms was January 9, 2026). These judgments were also vacated by the court orders.

• The following chart includes links to the court orders vacating the Yellowstone judgments.
• If you do not know the name of the county where Yellowstone had a judgment against you, visit the New York Courts’ website and search for the name of your business.

Please note:

• Vacatur under the settlement only applies to court judgments by one of the Yellowstone companies (see answer to previous question, “How can I find out if my MCA was from one of the Yellowstone companies?”).
• If you paid the full amount of a judgment against you, and Yellowstone notified the court that you no longer owed anything, your judgment was satisfied. If this happened, Yellowstone was not required to vacate the judgment as part of the settlement with OAG.
• Rust sent you a notice if our records indicated that Yellowstone had an unsatisfied judgment against you or your business. Rust sent these notifications on March 21, 2025, by mail and/or email, depending on the contact information Yellowstone had on file.

As part of the settlement, Yellowstone has terminated outstanding liens upon a merchant's request.

• The deadline to submit a request for lien termination was July 8, 2025, as posted on this website and explained in notices sent to merchants.
• UCC liens typically expire automatically after five years. If Yellowstone’s lien is more than five years old, it may have already expired.
• You may be able to check the status of a lien by searching a database provided by the state where you are located. New York merchants can search the name of their business on the New York Department of State’s UCC Lien Filing System.

The Yellowstone companies, and the two executives who are part of the settlement, are: 

• permanently barred from the MCA industry 
• required to cooperate in OAG’s ongoing lawsuit, and in any other OAG investigation concerning MCAs

Yellowstone has agreed to cancel all MCA debt and to stop all collection efforts related to its MCAs.

• If someone is contacting you about your Yellowstone debt, or you are having another problem with your Yellowstone MCA, file a complaint on the OAG website.
• For relief under the settlement — such as vacating judgments, and monetary relief — visit the Rust website.

You may have legal rights against Yellowstone. The settlement with Yellowstone does not affect any individual right you might have to sue Yellowstone yourself. 

• If you have questions about your legal rights against Yellowstone, contact your own lawyer.
• The OAG cannot provide any legal advice. Do not contact OAG for legal advice. 
• If someone contacts you about your Yellowstone debt, or if you are having another problem with your Yellowstone MCA, file a complaint with OAG.

The OAG has asked the court to rule that MCAs from Delta Bridge (Cloudfund) are illegal loans, and to order them to stop collecting payments. But the court has not yet ruled on that request. In any case, the court’s ruling will apply only to Delta Bridge MCAs – not to MCAs from other companies.

• If you are having problems with your MCA from Delta Bridge (Cloudfund) or another company, file a complaint with OAG. Include as much detail as possible. Attach all relevant documents.
• You may want to consult an attorney about any legal rights you may have against Delta Bridge or another MCA company. Questions about whether to continue making payments on an MCA should be directed to your attorney.
• The OAG cannot act as your lawyer or provide any legal advice.

Statements and evidence from victims can be very helpful to proving deception and fraud.

If you had an MCA from Yellowstone or Delta Bridge (Cloudfund), and would like to provide a statement or evidence for the court, fill out a complaint form on the OAG website:

• Please include as much detail as possible.
• Attach all relevant documents you have available – like your MCA agreements with Cloudfund or Yellowstone, payment records, and email or text correspondence.  
• If the form does not let you upload all your information, write in your complaint that you have more documents to provide. We will contact you to follow up.