Here’s Why David Einhorn is Suing Apple

  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

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.

Is Apple now a once-in-a-decade buying opportunity? Click here to get your 24-page Ultimate Cheat Sheet to Apple’s Stock now!

“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.”

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business