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Judge Approves Acceleration Request of Lawsuit Against Apple
A lawsuit filed last week by hedge fund manager David Einhorn’s Greenlight Capital has been fast-tracked at the request of Apple, according to CNET. The reason for the fast-tracking is so the company can share its cash reserves with investors.
U.S. District Judge Richard J. Sullivan for the Southern District of New York permitted the request from Apple, which moves the scheduled forward for a hearing on a preliminary injunction asked for by Greenlight Capital. Apple told the judge that the meeting would affect its shareholder meeting later in February.
The request for modification asked that document filing dates be moved up by two or three days and that arguments in the case be scheduled for February 19 instead of February 22.
Apple was sued on February 7 by Greenlight Capital, claiming that it needed to distribute preferred stock to current shareholders and that Apple did not like the idea when it was discussed. Einhorn argued that Apple would hold a large amount of cash even though it would be sharing the value of the balance sheet if high-yield preferred shares are issued.
The most recent proxy statement from Apple has items up for vote during its February 27 shareholder meeting. The statement includes a proposal that eliminates ‘blank check’ preferred stock. The lawsuit filed by Einhorn asked for an injunction to keep Apple from bundling the provision with other items. He wants all of the items to be voted on separately.