David Einhorn’s very public battle with Apple (NASDAQ:AAPL) looks to be over for now. On Friday, Einhorn’s Greenlight Capital dropped its lawsuit against the iPhone maker regarding a preferred stock proposal. The proposal, which had been part of Apple’s annual meeting proxy, would have allowed shareholders to vote on eliminating preferred stock from the company’s charter.
Apple was forced to remove the proposal from this week’s meeting after a federal judge ruled it had been improperly “bundled” with other measures up for voting, thus violating U.S. Securities and Exchange Commission rules.
While Einhorn had built the court case based on this technical issue, he has also repeatedly stressed that his bigger fight was to get Apple to distribute more of its $137 billion cash pile to shareholders. Einhorn has recommended Apple issue iPrefs, or preferred shares with a perpetual dividend.
According to Reuters, lawyers for the hedge fund notified U.S. District Judge Richard Sullivan in a letter that they no longer planned to pursue the lawsuit. Sullivan then closed the case. A Greenlight spokesman said on Friday that the suit had served its purpose.
Apple’s stock has lost about 5 percent of its value since Einhorn started his campaign against the company early last month. The stock has fallen more than 37 percent since reaching record highs in September, and touched a 52-week low in intraday trading on Friday. According to Reuters, Greenlight, which holds roughly 1.3 million shares of Apple, gained 0.3 percent in February. It is up 3.7 percent for the year.
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