This will now destroy the "Mayer Premium" and the stock will go back to 14
The idea that 3 Billion $ would help the stock in the future is now negated by the fear that the $3 Billion is gone - yesterday there was a 10 million share stall at 18.90 and today 5 million stall at 18.80 - these were shorts selling into the rally and now with this news and no way of proving that 2.8 Billion $ will not have to be put into reserves and with no mention of this in the 10Q Yahoo is facing years of investigations and SEC inquiries and there si no longer any rosy future for Mayer and Loeb.
If is proven (or even rumored) that Loeb or Einhorn knew about this suit then get ready for a serious problem.
HP was never expected to have the problems now known and Yahoo - is this company in trouble? Well it is in the market for sure.
OMG!!! run for the hills! They did not report an unknown amount of a "preliminary judgment"! before they knew it! They should legally had a staffed furtune teller to tell them, in advance, even the result of the non-disclosed amount that they will eventually settle the lawsuit.
Or better yet they can use Mayer's time-travel machine that she stole from GOOGLE to tell the SEC the result beforehand as they are legally bound to.