(Bloomberg) — Shareholders of collapsed fintech startup Linqto Inc. asked a federal judge in Texas to send the company’s bankruptcy case to Delaware, contending there they will be better protected from the whims of new managers.
Investment firm Sapien Group said in a court filing Wednesday that shareholders want to challenge actions taken by Linqto’s board after a new chief executive was hired to replace founder Bill Sarris.
The filing alleges that Linqto’s new management team under CEO Dan Siciliano created a corporate shell named Linqto Texas that was used to justify filing for bankruptcy there instead of Delaware, where the parent in incorporated.
Delaware’s reputation as the default location for companies to house…