Judge (kind of) agrees with Greenlight in Apple lawsuit
TweetFollow Us on Twitter

Judge (kind of) agrees with Greenlight in Apple lawsuit


A judge has agreed that Apple's proxy probably broke SEC rules, but hesitates to intercede, according to "CNNMoney (http://tinyurl.com/ab52wfg).

Greenlight, the hedge fund whose founder, David Einhorn, has been urging Apple to share its cash with investors by issuing high-yielding preferred shares, alleged in a lawsuit that the company unfairly lumped a stock restriction with two other corporate governance matters set for a vote by investors on Feb. 27. Lawyers for Greenlight Capital argued that putting into one proposition three separate items -- two of which Einhorn supported and one (which barred Apple's board from issuing preferred shares without a shareholder vote) he vehemently opposed -- was a clear violation of SEC regulations against such "bundling."

Today U.S. District Judge Richard Sullivan said he was inclined to agree. However, less clear is whether Greenlight had proved that it would suffer the "irreparable harm" required for the judge to issue a preliminary injunction blocking the vote, reports "CNNMoney." Besides, no matter how the vote went, he said, Einhorn was unlikely to get Apple to issue the preferred shares he had been lobbying for, the article adds.

Recently, Greenlight began uurging (http://tinyurl.com/ba2aytc) fellow shareholders of Apple to oppose the company’s attempt to amend its corporate charter. Apple has responded with the following statement:

"By early last year, Apple’s cash balance had built to a point beyond what we needed to run our business and maintain flexibility to take advantage of strategic opportunities, so we announced a plan to return $45 billion to shareholders over three years. As of next week we will have executed $10 billion of that plan.

"We find ourselves in the fortunate position of continuing to generate large amounts of cash, including $23 billion in cash flow from operations in the last quarter alone.

"Apple’s management team and Board of Directors have been in active discussions about returning additional cash to shareholders. As part of our review, we will thoroughly evaluate Greenlight Capital’s current proposal to issue some form of preferred stock. We welcome Greenlight’s views and the views of all of our shareholders.

"As a part of our efforts to further enhance corporate governance and serve our shareholders’ best interests, Proposal #2 in our proxy includes some recommended changes to our articles of incorporation. These changes were recommended independently of Greenlight’s proposal and would not preclude Apple from adopting their concept. Contrary to Greenlight’s statements, adoption of Proposal #2 would not prevent the issuance of preferred stock. Currently, Apple’s articles of incorporation provide for the issuance of 'blank check' preferred stock by the Board of Directors without shareholder approval. If Proposal #2 is adopted, our shareholders would have the right to approve the issuance of preferred stock. As such, Proposal #2 has the support of many of our shareholders.

"We remain committed to having an ongoing dialogue with our shareholders to get perspectives around return of capital and driving shareholder value."

 
AAPL
$101.79
Apple Inc.
+0.21
GOOG
$589.27
Google Inc.
+4.50
MSFT
$46.68
Microsoft Corpora
+0.16
MacNews Search:
Community Search:

Latest Forum Discussions

See All

view counter
view counter
view counter
view counter
view counter
view counter

Project Life (Photography)
Project Life 1.0 Device: iOS Universal Category: Photography Price: $2.99, Version: 1.0 (iTunes) Description: Imagine scrapbooking without scissors or adhesive or tools … or without having to print photos! Never before has scrapbooking been so easy, so fast, or so available in the palm of your hand! The Project Life® App takes... | Read more »
Skater (Games)
Skater 1.0 Device: iOS iPhone Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: All of Skateboarding In The Palm Of Your HandDesigned by skaters for skaters, we teamed up with 17 of the most prominent brands in skating to create the game every skater has been waiting for:Powerful And Intuitive Control | Read more »
Huerons (Games)
Huerons 1.1 Device: iOS Universal Category: Games Price: $.99, Version: 1.1 (iTunes) Description: EXCLUSIVE LAUNCH PRICE! Huerons is 50% off until September 20th!Huerons are tiny colored circles. Merge them by clicking on an empty cell next to them until only one Hueron remains on the board.There can be only one. -- Nominated for... | Read more »
Down Among the Dead Men (Games)
Down Among the Dead Men 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Avast! Take to the high seas in a fully interactive piratical tale of broadsides and buccaneers. From author Dave Morris and the studio behind Steve Jackson's Sorcery! and 80 Days. | Read more »
Sling Adds Chromecast Support Through Sl...
Sling Adds Chromecast Support Through Slingplaye​r Mobile Apps Posted by Jessica Fisher on September 18th, 2014 [ permalink ] | Read more »
How to Completely Delete Your iPhone’s C...
The iPhone 6 is out tomorrow, and plenty of people are excited about it. So much so that they’re planning to – or already have – traded in their old iPhone to go towards it. The thing about trading in hardware is it’s very important to make sure your personal information isn’t still on there once it leaves your hands. You generally have nothing to... | Read more »
Dragon Quest I Review
Dragon Quest I Review By Andrew Fisher on September 18th, 2014 Our Rating: :: THINE QUEST AWAITETHUniversal App - Designed for iPhone and iPad Its historical significance aside, Dragon Quest 1 is a fun, campy, difficult, thoroughly old-school RPG.   | Read more »
It Came From Canada: Overkill 3
Overkill 3 is like every trope of big modern gaming rolled into one. It’s a sequel to an action-packed military shooter. It’s flashy and scripted and flaunts its sophisticated graphics. And it’s a mobile game with a heavy emphasis on in-app purchases. But does it still manage to forge its own identity within that sea of marketing points? We find... | Read more »
New Modes and Leader Boards in Update fo...
New Modes and Leader Boards in Update for Rules! Posted by Jessica Fisher on September 18th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
TwistedRun Review
TwistedRun Review By Rob Thomas on September 18th, 2014 Our Rating: :: DON'T TWIST YOUR ANKLE!Universal App - Designed for iPhone and iPad TwistedRun is kind of like running up a giant curly fry into the sky. Or maybe that was just a dream I had last night. It’s hard to tell sometimes. No, wait. I was wrong. This is an endless... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.