Activist investor David Einhorn withdrew his lawsuit against Apple on Friday, after the company pulled the proposal at the center of the court battle from the agenda of its recent shareholders meeting.
Einhorn, who is agitating for Apple to issue preferred shares with a higher dividend in order to push its cash hoard out to stockholders, sued to halt a vote that would have forced a shareholder vote on such a move. A judge issued a temporary injunction against the vote last week, ruling that the suit by Einhorn and a separate lawsuit from another investor were likely to succeed because Apple had bundled the proposal with two others and were asking shareholders to issue one vote for all three proposals.
Einhorn officially killed the lawsuit Friday, a court ruling disclosed, according to Reuters.
Apple held its annual shareholders meeting Wednesday at its Cupertino headquarters, and CEO Tim Cook, speaking at that event, called the lawsuit "silly" for the second time.
"I strongly believe it was a silly sideshow, regardless of how the judge ruled," Cook said. However, he did later add, "I don't think the issue of returning cash to shareholders is silly -- we're seriously considering it."
Einhorn's Greenlight Capital is a large investor in Apple, and increased its stake by 20 percent to about 1.3 million shares in the final quarter of 2012, as many other hedge funds were selling Apple shares during a free fall for its stock price.
Apple stock hit a new 52-week low of $429.46 in Friday trading, a decline of 39.1 percent from the company's peak stock price, reached on Sept. 21, the day the iPhone 5 was released.
Hispanic #1 Breaking News for Entrepreneurs, Professionals and Small Business Owners - HispanicBusiness.com
OCTOBER 31, 2014
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