Blind Reliance on Client Data and Wide-Ranging Values Gut New Venture Valuation

BVLaw
Court Case Digests
November 13, 2017
6531 Real Estate Agents and Managers
531210 Offices of Real Estate Agents and Brokers
economic damages & lost profits
lost profits, breach of contract, daubert, expert testimony, admissibility, rule 702, reliability, projections, growth rate, relevant

Lightbox Ventures, LLC v. 3 RD Home Ltd.
2017 U.S. Dist. LEXIS 187202
US
Federal Court
New York
United States District Court
Lan Nguyen, Mitchell Rencher (plaintiff); unknown (defendant)
Cote

Summary

In a securities fraud action, appeals court upholds class certification; trial court did not err when it found direct evidence of price impact by way of event study was not necessary to show market efficiency where there was strong indirect evidence.

See Also

Lightbox Ventures, LLC v. 3 RD Home Ltd.

Court excludes lost profits calculation and valuations of new venture; experts’ unquestioning adoption of plaintiff’s data and assumptions, the large range of valuations proffered, and disclaimers accompanying valuations undermine opinions’ meaningfulness.

This article also appears in:
Business Valuation UpdateVol. 24 No. 4