Einhorn’s Greenlight Capital Drops Apple Lawsuit

By Features FOXBusiness

David Einhorn, president of Greenlight Capital, speaks during the Sohn Investment Conference in New York, May 16, 2012. (REUTERS)

Hedge fund manager David Einhorn’s Greenlight Capital dropped the lawsuit it filed against Apple (AAPL) after a federal judge granted an injunction to block a shareholder vote Einhorn opposed.

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Einhorn withdrew the suit on Friday, a week after Apple was forced to pull its proposal from a shareholder vote. Apple held its shareholder meeting on Feb. 27.

The lawsuit alleged that Apple bundled three separate issues into one proxy matter, which would be a violation of regulatory rules. A judge agreed that the issues were “impermissibly bundled.”

Apple CEO Tim Cook had called the lawsuit a “silly sideshow.”

Einhorn has said he supports two of the issues but opposes one that would have eliminated Apple’s ability to issue preferred stock without a shareholder vote.

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Einhorn held a conference call last week to propose that Apple issue perpetual preferred shares as a way to return some of its cash to investors. Einhorn called his proposal iPrefs, which would pay an annual dividend of $2.

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Shares of Apple were trading 1.65% lower at $434.11 a share Friday afternoon.