Einhorn's hedge fund drops suit against Apple

Greenlight Capital says the issue in the suit was resolved when Apple removed the proposal related to preferred shares from consideration at its shareholder meeting.

Apple's Cupertino, Calif., headquarters James Martin/CNET
Here's one less lawsuit for Apple to worry about.

David Einhorn's Greenlight Capital said it has dropped its suit against Apple that sought to block the electronics giant from bundling several proposals together for shareholder vote. The particular issue revolved around preferred shares -- Apple's proposal would eliminate its ability to issue "blank check" preferred stock without investor approval, but Greenlight wants Apple to consider issuing such shares.

A judge sided with Greenlight last week, which caused Apple to drop the proposal from its shareholder vote . Apple ultimately hosted its annual shareholder meeting earlier this week, without the bundled proposal.

The move today to drop the suit is more procedural than anything. Greenlight already was successful with its complaint, and the shareholder meeting date has come and gone.

A Greenlight Capital representative told CNET today that the fund dropped its suit because it was no longer needed.

"Apple removed the bundled proposal from the shareholder meeting, therefore resolving the issue," the representative said.

We've contacted Apple and will update the report when we hear back.

Apple has come under fire in recent weeks for its falling stock price and its perceived stinginess with investors. Though it started a stock repurchasing program and issued a dividend, some shareholders -- like Greenlight Capital -- want more. Greenlight and Einhorn have argued that issuing preferred shares would make investors happy while still allowing Apple to maintain a large cash hoard.

Apple, meanwhile, has criticized Greenlight and its push as a waste of time and money. Chief Executive Tim Cook during a recent Goldman Sachs conference called the suit "a silly sideshow" and said it was simply a distraction. Cook has said the company is considering ways to return more money to shareholders, including by issuing preferred shares, as Greenlight has suggested.

(Via AllThingsD)

Update, 9:45 a.m. PT: Adds background information.

 

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