Linqto Shareholders Oppose Bankruptcy Deal, Pitch Alternative

A group of Linqto Texas LLC shareholders objected to a settlement between the fintech startup and a committee of unsecured creditors that aims to repay customers, proposing a separate plan that it says would provide greater value.

Linqto, the committee, and a group of customers reached the deal that “would appear” to foreclose other stakeholder value-maximizing alternatives, the shareholders said in a Wednesday objection in the US Bankruptcy Court for the Southern District of Texas.

The Linqto settlement would pay customers who said they were wrongly told that they could buy stakes in hard-to-acquire private companies—including crypto startup Ripple and ...