John E Deaton
John E Deaton|Dec 30, 2025 23:02
REGARDING LINQTO: Voting on the Bankruptcy Plan ends on January 26, 2026. As I stated below, I will hold a spaces soon to go over the plan once again, including the options to choose: whether you select to place your shares in a Liquidation Trust (LT) - held in Trust until an IPO or Liquidity Event - or place your shares into a Closed End Fund (CEF) publicly traded on the NASDAQ - or you choose a combination of both and select a percentage allocation to each option - a percentage into the LT and a percentage into the CEF (e.g. 90-10; 80-20; 50-50, etc.). A LOT of misinformation has been stated over voting for the plan. Some folks have stated that if you vote in favor of the plan you give up your property rights. Not true. Shortly after the bankruptcy, I filed a motion asking the judge to impose a Constructive Trust - to declare that the shares held by Linqto in fact belonged to customers. Some folks have argued that the judge MUST first determine the issue of ownership before we go any further. Also, not true. Litigating the Constructive Trust would’ve been very lengthy, involving dozens of depositions and hundreds of thousands of documents, and a trial with witnesses. It would have cost tens of millions of dollars and easily exceeded $100M when finished. There was a very real chance we could’ve lost the argument on Constructive Trust. If we lost the argument, then customers would’ve likely received the money they invested back (cost basis only) - no upside. But even if we had won, we would then need to figure out how to deliver what was left over to the actual customers (and that’s where we are now). Doing that, after a trial, would’ve evaporated another $30-$50M of customer funds. In other words, even if we had won - after litigating the issue - customers shares would be sold to pay for the $150-$200M in costs. Instead, the Debtor and the Creditors Committee, with the invaluable guidance and hard work of Brown Rudnick (@KennethAulet, @stephendpalley, Robert Stark and others), agreed to settle and avoid the costs - so that customers potentially receive no less than 95% of what they are actually owed. On behalf of myself and the 4400 Linqto customers I represent, I agreed. Some disparaging comments have been made about the lawyers handling this case. The lawyers at Brown Rudnick, mentioned above, along with the lawyer representing the Debtor, Sam Schwartz, have acted in a way that makes me proud of my profession (fyi, I have experienced the opposite feeling at times). The lawyers handling this case would make much more money - as in tens of millions - if they didn’t settle and litigated all the issues involved. They put innocent investors/customers first. IMO, without question, this plan is what’s best for CUSTOMERS. But you don’t have to take my word for it. Below is part of the transcript from the December 23, 2025 hearing. Read the highlighted transcript for yourself.(John E Deaton)
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