Over the last couple of weeks a ‘silly sideshow’ has been playing out between Greenlight Capital and Apple Inc. Greenlight Capital’s CEO, David Einhorn, has been trying to force Apple to offer preferred stock plans by suing Apple in court, while Tim Cook and Apple disagree with his proposals.
Even though Einhorn has won at least one small victory over Apple in court, it’s been reported that Greenlight Capital just dropped their lawsuit against Apple.
Bloomberg reported on Twitter this morning that Einhorn has dropped the lawsuit against Apple over shareholder votes.
Tim Cook has repeatedly dismissed Einhorn’s lawsuit against Apple as nothing more than a ‘silly sideshow,’ but a New York judge actually ruled in favor of Greenlight Capital’s motion to block a shareholder vote on preferred stock.
Last week Einhorn introduced an idea for Apple to sell ‘iPref’ stock that would allow investors to get more money out of their investment in Apple. Even though Apple has said they are seriously considering Greenlight Capital’s proposal, the company hasn’t made any decisions at this time on whether they will offer preferred stock in the future.
When asked by All Things D why they dropped the lawsuit, a Greenlight spokesman said the suit had served its purpose. “Apple removed the bundled proposal from the shareholder meeting, therefore resolving the issue.”
- Source Bloomberg