United Development Funding IV fka UDFI

[actofwill]

If you are an investor that was "misled" by Kyle Bass and sold out it's market price. And no doubt the lawsuit will focus on market price.

If you are investor that bought because Kyle Bass made it cheap, it's book value.

However the former would need to constitute a class to claim damages. But then a class settled with the company already for a low ball amount I believe good for the lawyers mainly that brought the case. Can become interesting if the company wins as some of the class action lawsuits might need to be revisited.

But as a generic question I would say "both", because you look for a discount, which needs both numbers to be evaluated. Book value can be a meaningless number so whilst there lets assume its close to something called intrinsic value as well.