David Einhorn is hoping to start an investor revolt against Apple’s (NASDAQ:AAPL) stock practices and announced that his Greenlight Capital fund was suing the country’s most valuable company. Einhorn said Apple needed to be more active in offering the company’s shareholders more value for their investments.
According to the fund manager, Greenlight has filed a lawsuit in a New York federal court to get Apple to change a proposal that would remove the company’s ability to issue “black check” preferred stock. According to Einhorn, such a proposal does not conform to regulatory rules. He also urged Apple shareholders to vote against the proposal during the company’s annual meeting later this month.
“Greenlight believes that Apple’s proposal to eliminate preferred stock from its charter is an unprecedented action to curtail the board’s options,” the fund said in a statement.
In addition, the fund wrote in a filing with the U.S. Securities and Exchange Commission that it was “dissatisfied with Apple’s capital allocation strategy.”