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  • Apple Facing Lawsuit from Prominent Hedge Fund Boss


    Apple is no stranger to lawsuits, but the latest legal skirmish is unorthodox when compared to the intellectual property and patent-related matters that usually deliver Apple to the courtroom.

    Prominent hedge fund manager David Einhorn, who oversees management of Greenlight Capital, has 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 is backing the lawsuit in federal court, hoping it will force Apple to modify a proposal in its proxy. Specifically, Greenlight is opposed to a proposal that would remove Apple's ability to issue preferred stock from its charter.

    Greenlight is encouraging investors to vote against "Proposal 2" when the Apple shareholder meeting takes place in three weeks on February 27.

    Einhorn, a well-known short seller, is long on Apple shares. In a television interview on Thursday, he said that while he admires the company, it has a "cash problem" that it needs to fix by giving away perpetual preferred stock with a 4 percent yield.
    "We believe Apple must examine all of its options to unlock the growing value of its balance sheet for all shareholders," Einhorn says. "Over the past several months, we have had an ongoing dialogue with Apple regarding one option to do so, namely the creation of a new security, a perpetual preferred stock that would be distributed at no cost to Apple's existing shareholders, and would provide an attractive, sustainable dividend while preserving Apple's financial resources to pursue its business strategy."

    Source: Reuters
    This article was originally published in forum thread: Apple Facing Lawsuit from Prominent Hedge Fund Boss started by Michael Essany View original post
    Comments 9 Comments
    1. Carvensno's Avatar
      Carvensno -
      Ya short seller and he wants his money NOW!!! It's up to Apple to release dividends and how much to its shareholders. He's just trying to hurry up and push them to pay so he can dump his apple shares.
    1. chansed's Avatar
      chansed -
      Off topic sorry. "Notes" app broken after 6.1 jailbreak? Something to look into. Not working on my iPad 2 or 4S after jailbreak.
    1. Carvensno's Avatar
      Carvensno -
      Quote Originally Posted by chansed View Post
      Off topic sorry. "Notes" app broken after 6.1 jailbreak? Something to look into. Not working on my iPad 2 or 4S after jailbreak.
      There's a bunch of threads that cover these issues and prob find your solution too fix your problem.
    1. steve-z17's Avatar
      steve-z17 -
      Quote Originally Posted by chansed View Post
      Off topic sorry. "Notes" app broken after 6.1 jailbreak? Something to look into. Not working on my iPad 2 or 4S after jailbreak.
      Thread jack lately? There are a ton of threads for questions like that as mentioned above...

      Just another lame lawsuit.
    1. *T*'s Avatar
      *T* -
      Since when are companies required to put out a dividend?
    1. Lohand's Avatar
      Lohand -
      Short stack, trying to get a cash sack, as the fruit stock tumbles back, but Tim Co. will say catch the bozack!
    1. XweAponX's Avatar
      XweAponX -
      This asshat makes his living as a parasite. Apple needs to bury him deep. I don't care so much about Apple's policies that make JB more difficult, but so far they have not teased one iOS that couldn't be 0wned. In this case I'm with apple and they should stomp this pukes butt so hard he has to go back to stealing tip cash left in restaurants.
    1. chansed's Avatar
      chansed -
      Quote Originally Posted by steve-z17 View Post
      Thread jack lately? There are a ton of threads for questions like that as mentioned above...

      Just another lame lawsuit.
      Yes I have thanks
    1. iDurango's Avatar
      iDurango -
      Everyone always has to try and get their hands in something. Douchebag.