New York AG Alleges Rapid Ruling Favored MCA Funders
A June 8, 2026 New York AG lawsuit alleges Rapid Ruling marketed itself as neutral while favoring MCA funders. Allegations and requested remedies are not a judgment.
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- New York AG Alleges Rapid Ruling Favored MCA Funders
- ny ag sues rapid ruling alleging biased mca arbitration
- Allegations and requested remedies are not a judgment
On June 8, 2026, New York Attorney General Letitia James announced a lawsuit against Rapid Ruling and its founders, Zachary Meyer and Andrew Sachs. The AG alleges the service marketed itself as neutral while an MCA company helped shape its arbitration rules to favor funders.
These are allegations. The announcement does not establish that a court has found liability or awarded the requested restitution.
What the AG says its investigation found
According to the AG, 97% of approximately 3,000 arbitrations in Rapid Ruling's first three years proceeded without an appearance by the small business. The office says the initiating MCA company won nearly all of those matters and alleges excessive fees and rejection of merchant defenses.
The AG seeks an injunction, restitution, damages and civil penalties. A request for relief does not tell a merchant whether a particular award has been vacated or whether that merchant is entitled to payment.
What the FAIR Act does—and does not do
The FAIR Business Practices Act expanded the AG's authority to challenge unfair and abusive practices. It was signed December 19, 2025 and took effect February 17, 2026 (Chapter 708 of 2025; 60 days after signing).
Independent legal analyses explain a crucial limit: the new unfair and abusive prohibitions are enforced by the AG. The law does not automatically create an equivalent private lawsuit for every merchant, or declare every collection practice unlawful.
Keep Yellowstone relief separate
The AG's Yellowstone settlement is a separate matter. Its official FAQ, updated April 16, 2026, says $534 million of Yellowstone merchant debt was canceled and identifies April 3, 2026 as the mailing date for qualifying claimants' payments. The FAQ also distinguishes the settled Yellowstone companies from the ongoing Delta Bridge/Cloudfund litigation.
Do not assume relief involving one company applies to another agreement, an unrelated funder, or every arbitration award.
If you have an arbitration notice or court deadline, obtain advice about your specific documents promptly. Following a public lawsuit does not pause your own deadline.
This is general information, not legal, tax, accounting, or financial advice. Your agreement, payment records and applicable law control. Confirm any settlement or payoff directly with the funder.