N.J. Says Cash-Advance Pioneeer Deceived Borrowers (Correct)

New Jersey sued Yellowstone Capital LLC, a pioneer in a form of unregulated lending known as merchant cash advance, accusing the firm of deceiving small businesses and offering loans on predatory terms.

Attorney General Gurbir Grewal filed the suit on Tuesday in state Superior Court in Hudson County. Jersey City, New Jersey-based Yellowstone, whose business practices were the subject of a Bloomberg News series in 2018, faces similar allegations in a lawsuit brought by the Federal Trade Commission in August.

In a 55-page complaint, the attorney general says Yellowstone misled unsophisticated small-business owners into borrowing money under onerous terms, ...