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Cloudfund lawsuit: Delta Bridge AG case vs Rockland RPA opinions

Cloudfund lawsuit searches mix the NY AG case against Delta Bridge Funding with private Rockland opinions. Yellowstone's settlement does not cancel them.

Updated

Home · News · Cloudfund lawsuit

By Anonymous MCA industry contributor Research, writing and editorial review · MCA sales background

If you search Cloudfund lawsuit, you usually hit two different things at once: the New York Attorney General’s still-active case against Delta Bridge Funding (also known as Cloudfund), and private Rockland County collection suits where Cloudfund LLC is the plaintiff. The Yellowstone Capital settlement does not cancel Cloudfund balances. This page separates those tracks with the public records we checked.

Editorial update: 2026-10-27 · Desk research of public OAG materials and published Rockland Slip Opinions only. Not legal advice.

Quick answer

TrackWho is suing whomWhat the public record shows (so far)
NY AG enforcementPeople of the State of New York v. Yellowstone Capital LLC et al., Index 450750/2024 (New York County)Yellowstone entities settled. OAG states the case continues against Delta Bridge Funding (also known as Cloudfund) and remaining individuals. On March 4, 2026, the court rejected dismissal motions and let OAG’s claims proceed. No final merits ruling yet that Cloudfund MCAs are illegal loans.
Private collection (examples)Cloudfund, LLC as plaintiff against individual merchantsRockland County opinions go both ways on early motions. In Mobile Rehab (2024), a usury defense survived a motion to strike. In Perez & Ruiz (2024), the court granted summary judgment for Cloudfund on a receivables-purchase framing.

Soft next step if papers name Cloudfund or Delta Bridge: get the caption, the deadline, and the agreement reviewed before you assume Yellowstone debt cancellation applies. You can request a free consultation from Coastal Debt Resolve (Get a free review). Comparing providers? See our Business Debt Insider review.

Why Cloudfund is not the Yellowstone settlement

OAG’s consumer page on the Yellowstone settlement is blunt about who got relief and who did not.

  • OAG describes Delta Bridge Funding, also known as Cloudfund, as the company that “took over Yellowstone’s business in May 2021.”
  • The January 2025 Yellowstone consent judgment cancels outstanding debts to listed Yellowstone companies, vacates certain Yellowstone judgments, and permanently bars those Yellowstone companies (and named officers in that settlement) from the MCA industry.
  • OAG’s FAQ states the settlement does not apply to MCAs with Delta Bridge or Cloudfund.
  • OAG also states it has asked the court to rule that Delta Bridge (Cloudfund) MCAs are illegal loans and to order collection to stop, but “the court has not yet ruled on that request.”
  • After Yellowstone’s settlement, OAG says the lawsuit continues against Delta Bridge (Cloudfund) and remaining individuals. The public docket number remains 450750/2024.

If your debit name, contract header, or summons says Cloudfund or Delta Bridge, do not treat Rust Consulting Yellowstone claim notices as automatic cancellation of your balance. Match the legal entity on your papers to the Yellowstone subsidiary list on OAG’s page before you assume you are in that settlement class.

What this AG track does not establish

  • It does not, by itself, void every private Cloudfund judgment already entered.
  • It does not award you a refund formula for Cloudfund remittances.
  • A dismissal denial (March 4, 2026) is not a final finding that every Cloudfund RPA is a usurious loan. Merits still have to be decided.

Case spotlight: Mobile Rehab (usury defense survives, 2024)

Cloudfund, LLC v. Mobile Rehab, Inc., 2024 NY Slip Op 31749(U) (Sup. Ct. Rockland County May 1, 2024) (Cornell, J.).

Public facts from the opinion:

  • On October 13, 2023, the merchant entered a Future Receipts Sale and Purchase Agreement with Cloudfund. Purchase price $40,000 (about $37,554 after fees) for $58,000 in future receivables, with a stated daily debit of $552.
  • Cloudfund sued after alleged ACH blocking, claiming remittances of $16,560 and an unpaid purchase balance of $41,440, plus fees and interest.
  • Cloudfund moved under CPLR 3211(b) to strike all affirmative defenses, including usury.
  • The court denied dismissal of the usury defense (and several related defenses). It applied the familiar three-factor loan-vs-sale analysis from LG Funding and related cases, noted the merchant’s claim that reconciliation was illusory, and wrote that it was “concerned” the RPA may in fact be a usurious loan.
  • The opinion also notes that on March 5, 2024, OAG filed its petition against a large group of companies including Cloudfund, alleging RPAs were usurious loans disguised as merchant cash advances.

What this decision does not establish

  • It is not a final judgment that the Mobile Rehab agreement is void for usury.
  • It does not set an industry-wide interest-rate formula for Cloudfund.
  • Other Rockland cases (below) have gone the other way on summary judgment on different records.

Case spotlight: Perez & Ruiz (summary judgment for Cloudfund, 2024)

Cloudfund LLC v. Perez & Ruiz Ins. Agency LLC, 2024 NY Slip Op 31820(U) (Sup. Ct. Rockland County May 29, 2024) (Eisenpress, J.).

Public reporting of that Slip Opinion describes the court granting Cloudfund’s summary-judgment motion on breach of contract, treating the agreement as a contingent receivables purchase rather than a loan (so usury did not apply on that record), and entering judgment for $17,754 plus 9% statutory interest from October 20, 2023.

Read the actual opinion PDF on the New York Courts reporter before you treat secondary summaries as controlling. Trial-court Slip Opinions are often “uncorrected and not selected for official publication.”

What this decision does not establish

  • It does not erase the AG case against Delta Bridge / Cloudfund.
  • It does not prove every Cloudfund contract is enforceable in every county.
  • Conflicting Rockland outcomes (Mobile Rehab vs Perez & Ruiz) are a reminder that captions, affidavits, and contract text decide motions, not brand search volume.

What to do if you were served by Cloudfund or Delta Bridge

  1. Read the caption. Is the plaintiff Cloudfund LLC, Delta Bridge Funding, an assignee, or a Yellowstone-named entity already covered by the OAG settlement list?
  2. Calendar the answer or opposition deadline. Default practice is common in MCA dockets.
  3. Pull the RPA and the payment ledger. Reconciliation language, term, and bankruptcy default clauses are what New York courts keep citing under the LG Funding factors.
  4. Do not assume Yellowstone cancellation. OAG’s own FAQ says Cloudfund / Delta Bridge MCAs are outside that settlement.
  5. Decide whether you need counsel of record in the county named on the summons, or a settlement review in parallel. Engagement scopes differ. Confirm fees in writing.

If you want a second set of eyes on the papers, request a free consultation from Coastal Debt Resolve (Get a free review). To compare another provider, see our Business Debt Insider review.

FAQ

Does the Yellowstone $1.065 billion judgment cancel my Cloudfund balance?

No, not under OAG’s published FAQ. That settlement cancels debts to listed Yellowstone companies. OAG states it does not apply to Delta Bridge or Cloudfund MCAs.

Is Cloudfund the same company as Yellowstone Capital?

OAG describes Delta Bridge Funding (Cloudfund) as having taken over Yellowstone’s business in May 2021, and as a remaining defendant after Yellowstone settled. That is not the same as saying every Cloudfund merchant is inside the Yellowstone settlement class. Check the legal name on your contract and the OAG Yellowstone subsidiary list.

Did a New York court already rule that all Cloudfund MCAs are illegal loans?

Not as a final merits judgment in the AG case, based on OAG’s April 16, 2026 consumer update. The March 4, 2026 order let OAG’s claims proceed. Private Rockland opinions are case-specific and already point in more than one direction on early motions.

Cloudfund sued my company: should I ignore ACH pulls?

Stopping payments without a written agreement or court order can accelerate default fees, UCC enforcement, or judgment practice. Get the papers and deadline reviewed promptly. Compare written scopes and fees; see attorneys vs settlement companies.

Can a settlement company or attorney help while a suit is pending?

Sometimes, depending on the stage, the forum, and whether you already have counsel of record. Confirm in writing who appears in court, what fees cover, and what happens if a hearing is already scheduled.

Where else should I read on this site?

Related funder lawsuit pages

If you are comparing Cloudfund's court history with other funders, start with our MCA lawsuit tracker.

Related reading

Sources checked October 27, 2026

Desk research only. We did not contact Cloudfund or Delta Bridge for this update, and we did not review any merchant’s private claim file. This is not a complete litigation search or a prediction about your case.

Takeaway

Treat “Cloudfund lawsuit” as two stacks: (1) OAG’s ongoing case against Delta Bridge Funding / Cloudfund after the Yellowstone settlement, and (2) private Cloudfund collection opinions that already diverge on early motions in Rockland County. Yellowstone debt cancellation does not automatically clear a Cloudfund or Delta Bridge balance. Read the caption, the deadline, and the order before you assume either Mobile Rehab or Perez & Ruiz controls your file.

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