Apple responds to Federal Lawsuit
Apple’s declining share price and its apparent inflexibility to issue preferred stock to shareholders moved Greenlight Capital to file a federal lawsuit Feb. 7 against the company. The purpose of the suit is to force Apple to issue preferred stock to its shareholders.
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This goes against Apple’s core operating strategy of having large cash reserves on hand to maintain its preeminence in the industry.
At its Feb. 27 annual shareholder’s meeting, Apple plans to propose a change in its articles of incorporation that would allow shareholders to vote on whether to issue preferred stock.