People v. Yellowstone Capital — N.Y. Supreme Court — 2025
$1.065 billion judgment against 25 MCA subsidiaries. $534 million in merchant debt cancelled. Permanent industry ban.
People v. Yellowstone Capital LLC, No. 450750/2024 (N.Y. Sup. Ct. Jan. 22, 2025)
In re J.P.R. Mechanical — Bankr. S.D.N.Y. — 2025
Trustee recovered $3.07 million in MCA payments. Agreements recharacterized as loans. Summary judgment granted.
In re J.P.R. Mechanical Inc., No. 22-10579 (Bankr. S.D.N.Y. May 30, 2025)
In re TOUSA — 11th Circuit — 2012
$2 billion in transfers avoided. Lending transaction itself rendered borrower insolvent.
In re TOUSA, Inc., 680 F.3d 1298 (11th Cir. 2012)
Mellon Bank v. Metro Communications — 3d Circuit — 1991
Established unreasonably small capital standard. Business can be solvent and still have insufficient operating capital. Reasonable foreseeability test.
Mellon Bank, N.A. v. Metro Communications, Inc., 945 F.2d 635 (3d Cir. 1991)
In re Anadrill — Bankr. S.D. Tex. — 2026
Merchant paid $1,016,000 on $650,000 advance. Court found lack of reasonably equivalent value. Avoidance claims survived dismissal.
In re Anadrill Directional Services Inc., 2026 WL 234908 (Bankr. S.D. Tex. Jan. 28, 2026)
In re Williams Land Clearing — Bankr. E.D.N.C. — 2025
MCA recharacterized as loan at 101.1% effective interest rate. Agreement declared void from inception.
In re Williams Land Clearing, No. 22-02094 (Bankr. E.D.N.C. May 16, 2025)
Fleetwood v. Richmond Capital — 2d Circuit — 2023
First federal appeals court ruling. MCA found to be usurious loan. Civil RICO damages upheld.
Fleetwood Services LLC v. Richmond Capital Group LLC, 22-1885-cv (2d Cir. June 8, 2023)
In re IVF Orlando — Bankr. M.D. Fla. — 2025
MCA funders do not own post-petition receivables from unperformed services. Claims treated as unsecured.
In re IVF Orlando, Inc., 2025 Bankr. LEXIS 2573 (Bankr. M.D. Fla. Oct. 3, 2025)