Hedge fund magnate David Einhorn has dropped his lawsuit against the company in which he holds some 1.3 million shares, reports “AllThingsD” (http://tinyurl.com/ch79fr4).
Einhorn’s Greenlight Capital has withdrawn the suit it brought against Apple over a proxy proposal that would have allowed shareholders to vote on eliminating preferred stock from the company charter. Greenlight has been urging Apple to share its cash with investors by issuing high-yielding preferred shares, alleged in the now-dropped lawsuit that the company unfairly lumped a stock restriction with two other corporate governance matters set for a vote by investors at the Feb. 27 shareholders meeting (the proposal was then yanked).
Lawyers for Greenlight Capital argued that putting into one proposition three separate items — two of which Einhorn supported and one (which barred Apple’s board from issuing preferred shares without a shareholder vote) he vehemently opposed — was a clear violation of SEC regulations against such “bundling.”
