Apple Inc. (NASDAQ:AAPL) gets sued by none other other than David Einhorn. Okay this does not happen everyday, for impact once again, this most certainly does not happen with Apple Inc. (NASDAQ:AAPL). The iPhone maker sues many tech companies, but a hedge fund manager of David Einhorn’s caliber suing a company of Apple’s stature is breaking new ground.

David Einhorn, Apple

David Einhorn released a statement today that his firm Greenlight Capital had filed a suit against Apple Inc. (NASDAQ:AAPL) because it wants the tech company to amend a proposal on its proxy, which the hedge fund believes does not follow the regulatory rules. He argues that Apple Inc. (NASDAQ:AAPL) has to do more to unlock shareholder value for its investors. The current proposal under debate removes Apple’s jurisdiction to issue preferred stock that pays a dividend.

Apple’s proposal will allow the company to sit on a lot of cash while turning over very little to the shareholders, at least that is what David Einhorn said in the press release and is now saying on CNBC. Despite having a lot of reserve cash, the shareholders have to suffer due to Apple’s ever falling stock value. If Apple unlocks the value of $137 billion that it holds on its balance sheet, the stock would have a lot more worth than it presently has.

David Einhorn is advising Apple Inc. (NASDAQ:AAPL)’s controlling shareholders to vote against the approval of Apple’s proposal. David Einhorn is now the second value investor who is not impressed that Apple does not pay more dividends to its investors despite of having a lot of cash, earlier Leon Cooperman said the same about the stock, although he did not sue the company of course. Einhorn has his own style.

Just a few weeks ago, despite losing a lot on Apple Inc. (NASDAQ:AAPL) in the fourth quarter, David Einhorn had nothing bad to say about the company which is his largest long position. He also increased the holding in the last quarter.

David Einhorn usually wins all of his activist battles with companies and for now Apple Inc. (NASDAQ:AAPL)’s stock does need some kind of attention. So we are hoping this is a win win for both sides.