Apple files response to shareholder lawsuit

Apple filed its formal response to the lawsuit initiated by Greenlight Capital’s David Einhorn and blasted the complaint as being without merit and nothing less than an attempt to hold shareholders “hostage” by forcing Apple to acquiesce to a specific plan for the issuing of preferred shares that would primarily benefit Greenlight Capital.

This is going to be interesting.



  • Steven Fisher

    How far do you think this will go? The case seems pretty baseless.

  • http://mangochut.net/ mangochutney

    “Miller, we weren’t quick enough to cash in on the Apple stock option manipulation. What do you have to say for yourself?”

    — “Uhm… Sorry Sir?!?”

    “Not good enough Miller. If you don’t want to trade positions with the Mexican schlob who’s cleaning my toilet, you better come up with something.”

    — “Yes Sir, I will Sir, you can count on me Sir.”

    … two weeks later …

    — “Sir, I have a proposal that would let us milk Apple in the short term and have us profit immensely if the company stays as successful as it is.”

    “You’ve got my attention.”

    — “Well we only have to sue Apple claiming they have too much cash on hand and that it’s hurting the shareholders.”

    “Uh-huh, but to what end?”

    — “All of this is only a ruse of course. We’ll get them to give out preferred stock that pays higher dividends and comes with a few other perks. Then we will buy as much of it as we can and BOOM the money we start to flood in.

    “That’s actually good Miller. I guess toilet duty is off the table (for now).”, “Pedro, I dropped a burrito deuce in my private toilet, get in there and clean up the mess. Pronto!”

    • http://digitizedsociety.tumblr.com/ DigitizedSociety

      — “Then we are free to continue to play options games with the common stock and screw over the the peasants that can’t afford the preferred stock”.

  • http://digitizedsociety.tumblr.com/ DigitizedSociety

    Finally someone calls this out for what it is. A Wall Street Elite insider trying to carve out a new class of stock that would benefit himself and his brethren.

    This move is to create a premium class stock to keep steady for consistent dividends Wall Street play games with the common stock.