New York Secures $1 Billion Judgment Against Predatory Lending Firm

New York Attorney General Letitia James secured a $1.065 billion judgment against Yellowstone Capital, now operating as Delta Bridge Funding and Cloudfund, for alleged predatory lending practices. The settlement, announced on January 24, 2025, includes $534.5 million in debt relief for over 18,000 small businesses across the U.S., including $36 million for New York-based businesses. The judgment also demands $16.1 million in payments from Yellowstone and its executives while holding the company liable for an additional $514.3 million in outstanding debt.

The lawsuit alleges that Yellowstone misrepresented its services by falsely claiming it purchased receivables and provided refunds if a business struggled. Instead, the company debited fixed payments, imposing exorbitant interest rates—some as high as 820%, far above New York’s 16% usury cap. These practices reportedly forced successful businesses to shut down, harming local economies and small business owners.

This settlement builds on a December 2023 agreement in which Yellowstone paid $5.6 million and forgave $21.8 million in debt to settle similar claims in New Jersey. However, legal action against Delta Bridge Funding, Cloudfund, and Yellowstone’s co-founder David Glass is ongoing. Attorney General James emphasized her office’s commitment to protecting small businesses from exploitative lenders.