Short answer
Delta Bridge Funding, also known as Cloudfund, is the company that took over Yellowstone Capital's merchant cash advance business in May 2021. When the New York Attorney General settled with Yellowstone in January 2025, cancelling $534 million in merchant debt, Delta Bridge and Cloudfund did not settle. They are still defendants, the case is still running, and on March 4, 2026 the court rejected their attempt to have it dismissed. If you are paying Delta Bridge today, none of the Yellowstone relief applies to you.
This page summarizes what the public record shows as of September 21, 2026. It draws principally on the New York Attorney General's own settlement and litigation page for the Yellowstone matter, last updated April 16, 2026, and the public docket in People v Yellowstone Capital, index number 450750/2024, New York County Supreme Court. It is not legal advice.
The distinction that decides your position
This is the single most misread thing about this case, and getting it wrong costs merchants real money.
The Attorney General sued a large group of companies and individuals in March 2024. In December 2024 most of them settled. The Yellowstone companies and two executives agreed to a consent order: all merchant debt cancelled, judgments vacated, liens terminated, and a permanent ban from the merchant cash advance industry.
Delta Bridge Funding LLC and Cloudfund LLC were not part of that settlement, and neither were the remaining individual defendants. The litigation against them continues.
The practical takeaway is blunt. If your advance came from one of the named Yellowstone companies, your balance was cancelled automatically and you did not have to do anything. If your advance came from Delta Bridge or Cloudfund, nothing has been cancelled, the debits continue, and the settlement does not reach you.
What the Attorney General alleges about Delta Bridge
The allegation is not that Delta Bridge is a separate operation with its own problems. It is that it is the same operation under a new name.
According to the Attorney General, Delta Bridge took over Yellowstone's business in May 2021 and continued issuing and collecting on the same products through the same personnel who had supervised and operated the Yellowstone business.
The underlying claim mirrors the one made against Yellowstone: that these were not merchant cash advances at all but loans, that the rates on them exceeded what New York law permits, and that deception was used in collecting them. The Attorney General has asked the court to rule that Delta Bridge's advances are illegal loans and to order the company to stop collecting on them.
One important limitation applies. The court has not ruled on that request. Nothing about Delta Bridge's agreements has been declared unlawful, and no merchant should treat the lawsuit as permission to stop paying.
The March 2026 ruling
Motion to dismiss rejected, 4 March 2026
Delta Bridge, Cloudfund and the remaining individual defendants asked the court to dismiss all of the Attorney General's claims against them.
The outcome was that the court refused. On March 4, 2026 it held that all of the Attorney General's claims could proceed, and the case moved on toward the merits. The court still has to decide whether the defendants broke the law and what any remedy should be.
What the record does not give you is a timetable. There is no public indication of when the matter will be resolved, and the Attorney General's own guidance says as much.
Where this leaves a merchant paying Delta Bridge right now
Three things are true at once, and all three matter.
Your agreement is still enforceable.
No court has voided it. Blocking debits or moving the bank account is typically defined as breach in these contracts and will make your position materially worse, not better.
You are not without standing.
There is an active state action against your funder that has survived a dismissal motion, which is a meaningfully different position from having no case at all.
The Attorney General wants to hear from you.
The OAG has publicly invited merchants with Delta Bridge or Cloudfund advances to file complaints and provide evidence, and has said that statements and documents from merchants are useful in proving deception and fraud.
The practical takeaway is that filing a complaint costs you nothing, creates a record, and feeds a case that is already running. It is not a substitute for dealing with your agreement, and it will not stop a debit this month.
How to work out whether this is actually your funder
The Yellowstone settlement named 25 companies, and almost none of them had Yellowstone on the paperwork. The same problem applies here.
Read the first paragraph of the agreement,
not the letterhead. The name at the top is often a doing business as name rather than the contracting entity.
Check the bank statement.
The description on the debit tells you which company is actually taking the money, which is the most reliable single indicator.
Look for Delta Bridge Funding LLC or Cloudfund LLC by name.
If either appears, you are in the ongoing case rather than the settled one.
Check whether the broker was a different business entirely.
The company that called you is frequently not the company that funded you.
Search the UCC filing system
in your state under your business name to see what is filed against you and by whom.
Frequently asked questions
Was my Delta Bridge advance cancelled by the Yellowstone settlement?
No. The settlement covered the 25 named Yellowstone companies. Delta Bridge Funding LLC and Cloudfund LLC did not settle and remain defendants in the ongoing case. Nothing about your balance has been cancelled and the debits continue.
What is the relationship between Delta Bridge, Cloudfund and Yellowstone?
Delta Bridge Funding is also known as Cloudfund. According to the Attorney General it took over Yellowstone's business in May 2021 and continued issuing and collecting on the same products through the same personnel who ran the Yellowstone operation.
Has a court ruled that Delta Bridge advances are illegal loans?
No. The Attorney General has asked the court to rule that they are and to order the company to stop collecting, but the court has not decided that question. On March 4, 2026 it rejected the defendants' motion to dismiss, which allows the claims to proceed but decides nothing about the merits.
Should I stop paying while the case is running?
No. Your agreement has not been voided and remains enforceable. Blocking ACH debits or moving the designated bank account is typically defined as an event of breach in these contracts, and merchants who have done so have had judgment entered against them and their guarantors personally.
Can I do anything useful while the case continues?
Yes. The Attorney General's office accepts complaints about Delta Bridge and Cloudfund and has said that merchant statements and documents help prove deception and fraud. Filing costs nothing and creates a record. It is not a substitute for addressing your agreement.
How do I tell which company actually holds my advance?
Read the first paragraph of the agreement rather than the name at the top, which is often a doing business as name, and check the description on your business bank statement to see which entity debits the account. If Delta Bridge Funding LLC or Cloudfund LLC appears, you are in the ongoing case rather than the settled one.
If the payments are the problem
If a Delta Bridge debit is taking more than the business generates, the litigation does not help you this month. What does is establishing the exact entity on your agreement, the purchased amount still outstanding, what your reconciliation clause entitles you to request and what documentation it demands, and whether a UCC filing sits against the business. Those facts determine what can actually be negotiated, and they are worth having in hand before an account starts returning debits.
Sources
- Settlement with Yellowstone Capital regarding MCAs, New York State Office of the Attorney General. Settlement scope, the Delta Bridge and Cloudfund carve-out, the March 4, 2026 ruling and the invitation to file complaints, page last updated April 16, 2026.
- Attorney General James Announces $1 Billion Settlement with Predatory Lender Yellowstone Capital, New York State Office of the Attorney General, press release, January 2025.
- People v. Yellowstone Capital et al., complaint (PDF), New York State Office of the Attorney General, filed March 2024, index number 450750/2024.
