Legal News

Greenlight Capital Explains Its Stand against Apple
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Friday, Greenlight Capital owner David Einhorn responded to Apple’s filing made on Wednesday, and reiterated his stand that the court should block Apple Inc.’s “Proposal 2” that plans to remove the company’s powers of issuing preferred shares, following Einhorn’s demands that the said powers be used for issuing preferred shares to all current shareholders of Apple.

In his court filings, Einhorn said, “Apple should not be allowed to substitute its judgment for its shareholders’ judgment, and should be enjoined” from allowing the shareholder vote to be staged.

Last week, Greenlight had sued Apple in its effort to compel the company to share more of its $137 billion cash hoard with current shareholders. Greenlight wants Apple to issue perpetual preferred stock with a 4 percent dividend to current shareholders.

  
What
Where


Apple wants to get rid the company of the power before such a calamity befalls the company. Until now, Apple was not concerned with the company having the power of issuing preferred stocks at its sole discretion and without shareholder approval.

However, now the company seeks to have the power removed citing reports by ISS and Glass Lewis, that getting rid of the power from company constitution can help defend the company from any ostensible takeover bid.

But, Einhorn argued that “In my view, Apple is not a realistic take-over candidate because of, among other things, its enormous market capitalization.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Another Apple investor, Brian Gralnick has also sued to block both Proposal No.2 and another advisory “say-on-pay” vote on the compensation of executives. Brian maintains that Apple has failed to disclose sufficient details about the manner and reasons by which it awarded restricted stock units to specific executives.





 

RELEVANT JOBS

Senior Criminal Defense Trial Attorney

USA-GA-Atlanta

Criminal Defense Litigation Attorney We are seeking a Criminal Defense Litigation Attorney to joi...

Apply now

Paralegal (prefer unlawful detainer experience

USA-CA-Oakland

Oakland based law office has an opening for a Paralegal or a Unlawful Detainer Paralegal. This is...

Apply now

Litigation Legal Assistant

USA-GA-Dunwoody

Mozley, Finlayson & Loggins LLP is seeking a Litigation Legal Assistant to support the insurance def...

Apply now

Litigation Paralegal

USA-OR-Portland

Lindsay Hart, LLP, one of Portland\'s oldest law firms, is looking for a litigation paralegal with s...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Associate Attorney

USA-CA-San Jose

San Jose office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with 3-7 years...

Apply Now

Associate Attorney with 2+ years of litigation experience

USA-CA-San Jose

San Jose office of a BCG Attorney Search Top Ranked Law Firm seeks an associate attorney with 2+ yea...

Apply Now

Lateral Employment Law Attorney

USA-CA-San Jose

San Jose office of a BCG Attorney Search Top Ranked Law Firm seeks lateral employment law attorney w...

Apply Now

SEARCH IN ARCHIVE

To Top