If lawsuits are such a huge issue, why don't companies limit their IPO to, say, 1% at very low valuations and then follow with a larger ATM offering when stock prices reach a better level to get more cash? Because the banks don't let them?
Even if you make it a lottery, you will have to make sure everybody who would want to buy at the low price gets equal opportunity to do so.
Finally, I would think the tax department could see selling at a price that you know is significantly below market value as a gift that is taxable.
Tech companies especially have enough employees that own shares and want to sell that liquidity should not be a big issue. This allows the price to be tested while slowly adding volume (as price stabilizes, more employees willing to sell).