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After winning injunction, investor drops suit against Apple

Fresh off of his winning an injunction against an Apple shareholder proposal he didn’t like, hedge fund manager David Einhorn of Greenlight Capital has dropped his lawsuit against Apple(s AAPL). A New York federal court closed the case after a Thursday filing, according to MarketWatch.

Though he got what he wanted in regard to the shareholder proposal, this is not the end of Einhorn’s spat with Apple, whom he recently compared to a Depression Era grandmother because of how conservative the company is about keeping cash around.

Einhorn owns about 1 million shares of Apple stock. He sued the company because he disagreed with a proposal that would have required Apple to get shareholder approval before issuing any kind of preferred stock. He won an injunction from a federal judge who said Apple had wrongly “bundled” the proposal regarding preferred stock with other tweaks to the company’s charter in one proposal. As a result, Apple was forced to take the proposal off the shareholder ballot, which was voted on this past Tuesday at the company’s annual meeting in California.

Einhorn has meanwhile taken his plan for Apple to offer a preferred stock he’s dubbed “iPrefs” — that would pay a 50 cent quarterly dividend forever — public. Apple CEO Tim Cook has promised to review the proposal, but hasn’t yet offered a public answer to Einhorn.

2 Responses to “After winning injunction, investor drops suit against Apple”

  1. Pierre Little

    Jobs is rolling over in his grave! Cook is cowering to Wall Street. He should fought tooth and nail against this intrusion. Seems this is a blushing moment for apple management. Turn it around Cook and counter sue. One large shareholder doesn’t have the right to damage all the shareholders. Einhorn is not looking after investors but only his insatiable desire to sell more crap to investors based on his proposed self interested resale of iPrefs if he gets his way. Apple should be able to crush this type of Wall Street speculating on its stock by Einhorn’s “brilliant financial product”. Give me a break.

  2. So iHorn wants iPrefs. Not sure if he wants the money or just the publicity.

    Does he personally own 1,000,000 shares of APPL? Or does the hedge fund own them?