David Einhorn Drops Lawsuit Against Apple Inc. (AAPL)

InsiderMonkey (CC BY-ND 2.0) David EinhornDavid Einhorn InsiderMonkey (CC BY-ND 2.0)

Apple Inc. (NASDAQ:AAPL) has officially removed the controversial shareholder proposal, and as a result, David Einhorn has dropped his lawsuit against the tech giant. Einhorn filed the lawsuit because he believed that if the proposal passed, it would limit the company’s ability to issue preferred stock. Einhorn has been trying to talk Apple into issuing preferred stock for months, and he won his lawsuit on Feb. 22.

David Einhorn Drops Lawsuit Against Apple Inc. (AAPL)

Today MarketWatch reports that Einhorn’s case against Apple Inc. (NASDAQ:AAPL) is now officially closed after Apple said it would not keep the controversial proposal open. The vote on it was scheduled to occur at the shareholder meeting earlier this week, but Apple removed it from consideration for the shareholders. Einhorn filed documents to officially drop his suit against Apple after the shareholder vote on the proposal he was concerned about didn’t happen on Wednesday.

Einhorn won his suit a week ago because the judge decided that Apple Inc. (NASDAQ:AAPL) had lumped more than one proposal into one item on the shareholder proxy. Regulatory laws require that the proposals be separated, although in practice this has not been done.

In related news, Einhorn’s Greenlight Capital hedge fund, which manages over $8 billion, gained .3 percent in February, according to anonymous sources cited by Reuters. Greenlight Capital owns about 1.3 million shares of Apple Inc. (NASDAQ:AAPL), which is one of the largest positions held by the hedge fund.

Shares of Apple have fallen about 3 percent since Einhorn filed his lawsuit. The stock is down another 2 percent today, dipping dangerously close to the $430 per share mark.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at [email protected]

Be the first to comment on "David Einhorn Drops Lawsuit Against Apple Inc. (AAPL)"

Leave a comment