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.
On Friday, AllThingsD confirms, Einhorn's hedge fund dropped its lawsuit - a lawsuit that Apple CEO Tim Cook labeled as a "silly" sideshow. "I find it bizarre we find ourselves being sued for doing something that's good for shareholders," Cook remarked.

Not admitting defeat, a Greenlight spokesman says: “Apple removed the bundled proposal from the shareholder meeting, therefore resolving the issue.”

Source: AllThingsD