Last month, hedge fund manager David Einhorn, who oversees management of Greenlight Capital, filed a lawsuit against Apple in response to a growing "cash problem" the company purportedly exhibits. Blasting Apple's hoarding tendencies, Einhorn says Apple's $137 billion in cash-on-hand shouldn't be so far removed from shareholders.
Greenlight brought the lawsuit to federal court, hoping it would force Apple to modify a proposal in its proxy at that time. Specifically, Greenlight was opposed to a proposal that would remove Apple's ability to issue preferred stock from its charter.
Last week, Apple yanked that proposal from its shareholder meeting, after a federal judge ruled it had been “impermissibly bundled” with other matters requiring shareholder consideration, and issued an injunction preliminarily blocking a vote on it.
“Apple removed the bundled proposal from the shareholder meeting, therefore resolving the issue," a Greenlight spokesman says.