This month, the situation surrounding Linqto intensifies with a lawsuit against former CEO William Sarris. The lawsuit comes in the midst of the company's bankruptcy.
Lawsuit Against William Sarris
Attorney John E. Deaton has filed a securities fraud lawsuit against William Sarris on behalf of thousands of retail investors. The lawsuit claims that Sarris orchestrated a multi-year scheme with undisclosed markups (as high as 60%), misleading exemptions, and unlicensed sales tactics.
Challenges at Linqto and Bankruptcy
Linqto has filed for Chapter 11 bankruptcy, citing 'serious defects' in its corporate structure. The SEC and FINRA are investigating whether the sales of shares were conducted legally.
Shareholders' Strategy Against Bankruptcy
Current managers of Linqto express their intention to resist the ongoing bankruptcy claims. The Sapien Group, representing 52% of shareholders, is looking to challenge the bankruptcy filings.
Future actions by both shareholders and the new management at Linqto will be crucial in determining the company's fate and investor outcomes amid increasing regulatory pressure.
