Breakout Capital, LLC has filed a federal lawsuit accusing two New York-based merchant cash advance (MCA) firms of unlawfully interfering with its financial interest in a client’s receivables.
The complaint, filed Aug. 26, 2025, in the U.S. District Court for the Eastern District of New York, names Gold Capital Funding LLC and Capital Assist LLC as defendants.
According to the lawsuit, Breakout entered into a factoring agreement with Job.com in July 2021, purchasing the company’s accounts receivable and securing a first-priority lien on its assets. Despite that, the defendants allegedly asserted competing claims over the same receivables in 2025—years after Breakout had perfected its security interest.
“Defendants have deprived Breakout of its security,” the complaint states, alleging the interference caused substantial financial harm.
Breakout claims the defendants either knew or should have known about its lien, citing publicly filed UCC-1 Financing Statements from August 2021 and July 2022 that served as constructive notice. The company alleges that Gold Capital and Capital Assist filed false or misleading notices, leading to confusion among Job.com’s account debtors regarding who was entitled to collect the payments.
The complaint highlights a specific instance involving Mohawk Valley Health System, which withheld $249,947.96 in payments owed to Breakout due to the defendants’ claims. Breakout contends it issued cease-and-desist letters demanding the firms stop seeking payment from Job.com accounts, but those demands were allegedly ignored.
Breakout is seeking at least $249,947.96 in damages, along with attorneys’ fees and costs. The company also requests a declaratory judgment affirming its senior lien on Job.com’s receivables, as well as a court order directing that all outstanding payments be made exclusively to Breakout.
The case is presided over under Case No.: 1:25-cv-04744 in front of the United States District Court for the Eastern District of New York.
Source: 125cv04744_Breakout_Capital_LLC_v_Gold_Capital_Funding_LLC_Complaint_Eastern_District_New_York.pdf