Global law firm White and Case LLP has informed a federal bankruptcy court that it is still awaiting payment for legal services provided to a group of shareholders involved in the ongoing Chapter 11 bankruptcy of Linqto Texas LLC, a financial technology company that operates a private securities investment platform.
In a filing submitted to the
U.S. Bankruptcy Court for the Southern District of Texas, White and Case stated that it was retained by Sapien Group USA LLC, an investment firm representing a coalition of Linqto shareholders, to provide legal representation during the early stages of the bankruptcy proceedings. According to the firm, despite months of follow-up, Sapien has failed to pay outstanding legal fees for work already performed.
Representation of Linqto Shareholders
White and Case was engaged in August 2025 to organize and represent a shareholder group seeking formal recognition in the Linqto bankruptcy case. The firm’s work included legal analysis, court filings, and advocacy related to the shareholders’ attempt to obtain official committee status a designation that can provide shareholders with a more direct role in restructuring negotiations.
However, the bankruptcy court ultimately declined to approve the formation of a shareholder committee. Court records indicate that the request was denied approximately two months after White and Case began its representation.
Despite the court’s ruling, White and Case maintains that the legal services were fully rendered under the engagement agreement and that the firm is entitled to payment regardless of the outcome of the committee request.
Allegations of Nonpayment
In its court filing, White and Case asserted that Sapien Group USA has not responded to repeated communications regarding unpaid invoices. While the law firm did not publicly disclose the total amount owed, the filing makes clear that the firm considers the balance overdue and unresolved.
The dispute highlights a recurring issue in
large bankruptcy and restructuring cases, where law firms may be retained by individual stakeholders or ad hoc groups whose ability or willingness to pay becomes uncertain as proceedings evolve.
White and Case emphasized that it was not retained as a court-approved professional, meaning its compensation does not automatically come from the bankruptcy estate. Instead, payment responsibility rests with the shareholder group that hired the firm.
Broader Context of the Linqto Bankruptcy
Linqto Texas LLC filed for
Chapter 11 bankruptcy protection in 2025, citing mounting financial pressures and regulatory challenges tied to its business model. The company operates an online platform that allows accredited investors to access shares in private companies, a rapidly growing but highly scrutinized sector of the financial markets.
Since the filing, the bankruptcy case has drawn attention from creditors, investors, and legal professionals alike, with disputes emerging over governance, stakeholder representation, and professional fees. As with many complex corporate restructurings, multiple law firms and financial advisers are involved, each seeking clarity on compensation as the case progresses.
Legal Fees and Bankruptcy Risk
Legal experts note that fee disputes like this one are not uncommon in
high-stakes bankruptcy litigation, particularly when professionals are hired by unofficial stakeholder groups rather than court-sanctioned committees.
Without court approval, law firms must rely on private engagement agreements for payment, which can become contentious if the underlying strategy fails or if the client’s financial position deteriorates.
While White and Case has not initiated a separate lawsuit against Sapien Group USA, its filing places the issue on the court record and preserves the firm’s position should further action become necessary.
What Happens Next
At this stage, the court has not ruled on the fee dispute, and it remains unclear whether Sapien Group USA will contest White and Case’s claims or seek to negotiate payment. The matter may be resolved privately, or it could escalate into additional litigation depending on the parties’ next steps.
For now, the disagreement serves as a reminder of the
financial risks law firms face when representing investors in complex restructuring cases, especially when outcomes are uncertain and payment arrangements fall outside the protections of the bankruptcy estate.
As the Linqto Chapter 11 case continues, additional disputes over professional fees and stakeholder rights are expected to surface, further shaping the trajectory of the restructuring.
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