Einhorn drops lawsuit against Apple

Einhorn’s Greenlight Capital on Friday withdrew 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.

I’m glad that’s over.

  • Steven Fisher

    Over? What’s to stop him from re-filing before their next annual meeting?

    • Urgh, the reporting on this has been so lousy I’m not surprised no one can figure out what’s going on. The only reason why Einhorn “won” anything was because SEC rules state that a corporation can’t “bundle” together unrelated proposition in a shareholder vote.

      Since Einhorn would have voted “yes” for 2 of the 3 proposals the judge found that he was harmed by having the issues bundled and hence blocked the vote.

      What will happen is that next year Apple will submit the proposal to require shareholder approval to issue preferred stock as a separate item. And Einhorn will have to argue that increasing shareholder oversight is somehow detrimental to shareholders. He will, obviously, lose that argument.

      • Steven Fisher

        Ah, so as long as Apple doesn’t make the same mistake, he shouldn’t be able to hold this up long enough for it to miss being voted on?

        Thanks for the explanation, I get it now!

        • Well he could certainly try to sue claiming that putting more power in the hands of shareholders somehow hurts…shareholders. In fact I hope he does.

  • Of course he dropped the lawsuit: Apple withdrew the proposal.