Judge approves Apple request to speed up schedule in Greenlight Capital case
A U.S. District Court judge on Monday bumped up the schedule of Apple's pending case with Greenlight Capital, agreeing that the issue would be resolved as soon as possible given the affect an outcome could have on the company's upcoming shareholder meeting.
New York District Court Judge Richard Sullivan accelerated the suit's schedule by a number of days at the behest of Apple, which is being sued by Greenlight Capital in a bid to have the company mete out a portion its vast $137 billion cash hoard with investors. According to Apple, the request had the support of Greenlight's legal counsel, reports Reuters.
Behind the suit is Greenlight's David Einhorn, one of Apple's most prominent shareholders, who is suing to block a proxy proposal that could see the issuance of preferred stock eliminated from the company's charter.
In Apple's so-called "Proposal 2," the iPhone maker argues that a higher level of governance can be achieved by stripping the board's ability to issue preferred stock, instead leaving the matter to the purview of shareholders.
Einhorn countered, saying that Apple should return more of its $137 billion in cash to investors in the form of perpetual preferred shares that carry attractive dividends. In the suit, he is taking Apple to task over how the proposal is bundled together with two others in the company's proxy statement, which is headed for debate at the annual shareholder meeting on Feb. 27.
For its part, Apple said it is holding "active discussions" on what to do with the cash hoard and denies that the passage of Proposal 2 would hinder the issuance of preferred stock.
Apple is scheduled to respond in the Greenlight suit by Wednesday, with Greenlight slated to file subsequent documents by Friday. Both parties have been called to appear in front of Judge Sullivan for oral arguments on Feb. 19.
New York District Court Judge Richard Sullivan accelerated the suit's schedule by a number of days at the behest of Apple, which is being sued by Greenlight Capital in a bid to have the company mete out a portion its vast $137 billion cash hoard with investors. According to Apple, the request had the support of Greenlight's legal counsel, reports Reuters.
Behind the suit is Greenlight's David Einhorn, one of Apple's most prominent shareholders, who is suing to block a proxy proposal that could see the issuance of preferred stock eliminated from the company's charter.
In Apple's so-called "Proposal 2," the iPhone maker argues that a higher level of governance can be achieved by stripping the board's ability to issue preferred stock, instead leaving the matter to the purview of shareholders.
Einhorn countered, saying that Apple should return more of its $137 billion in cash to investors in the form of perpetual preferred shares that carry attractive dividends. In the suit, he is taking Apple to task over how the proposal is bundled together with two others in the company's proxy statement, which is headed for debate at the annual shareholder meeting on Feb. 27.
For its part, Apple said it is holding "active discussions" on what to do with the cash hoard and denies that the passage of Proposal 2 would hinder the issuance of preferred stock.
Apple is scheduled to respond in the Greenlight suit by Wednesday, with Greenlight slated to file subsequent documents by Friday. Both parties have been called to appear in front of Judge Sullivan for oral arguments on Feb. 19.
Comments
Most prominent shareholder? What makes a journalist write this?
I despise people that make money of the misfortune of others. Like this David Einhorn. He's contributing to many charity organisations, but comes across as Bill Gates v2.
Some reading this reading revealed that Greenlight has had some of its short position bets explode this quarter. Not doubting the 'sincerity' underlying this guys lawsuit, but could it just be a desperation move trying to offset some large losses in other holdings? ... naw, that would never happen ...
Einhorn can't attack the BOD openly so he is asking for a legal ruling ?
Still an attack no matter how its dressed up.
Cook, Oppenheimer and co have to play the game so that this type of situation can't arise in the future.
This issue should be decided by a shareholder vote not in a court - Einhorn/Greenlight should be sued for wasting everybodies time.
It would be a sad day if a legal ruling dished up millions to the likes of Einhorn while real long term Apple investors ended up with less.
So here we have a guy suing Apple to split this later added (ammended, it has to be amended to some issue).
While from a legal standpoint, he could be right.
From a moral standpoint, this is a guy whose company owns less than 1% of Apple but he wants ( maybe not but could ) that wants to keep the option to use his political and social influences to the rich social elite to get him what he wants, preferred stock etc. He wants his less than 1% ownership to have more influence the requiring a 50% shareholder vote.
Apple wants to restrict what the board can do regarding issuing preferred shares. Apple is trying to make sure that rich hedge funds don't have undue influence. Apple is trying to make its decisions more democratic in regard to the little guys.
Lets be clear - he doesn't own the stock, Greenlight has invested funds on behalf of their investors (Greenlights investors).
Greenlights got caught going long prolly with an intent to short at some stage and got exposed.
waah - sheesh.
Now self appointed spokesman trying to leverage himself out of a situation by suing.
http://en.wikipedia.org/wiki/David_Einhorn_(hedge_fund_manager)
Originaly posted by Gatorguy
http://www.reuters.com/article/2013/02/09/us-apple-greenlight-lawsuit-idUSBRE91713S20130209
"On Friday, the California Public Employees Retirement System, the biggest U.S. public pension fund and owner of 2.7 million Apple shares, and influential proxy voting firm ISS Proxy Advisory Services both urged investors to vote in favor of the shareholder proposal in question.
"All shareholders should have a vote," Anne Simpson, CalPERS Senior Portfolio Manager and Director for Corporate Governance said on CNBC. "We don't want the board cutting a deal on the side with a hedge fund out of fear of a lawsuit that will cancel the annual meeting.
"This is a big issue that needs to be thought through carefully and we want the board to come to all shareholders and give a chance to have their voice heard."
Rough in the middle, huh Dave?
You ought to know, just ask some of the companies you've shorted
So consider that Tim cook is speaking at wall street in the morning and sitting at the state of the union at night.
I'm curious what he is going to talk about?
Two things I think of:
1
Bring Apple's money outside the US back at a "fair" tax rate which will apply to to all US based multinationals.. Bi-Partisan negotiations and a win for Obama.
2
Tell Einhorn, Greenlight, and Wall Street to F-Off. Take rich people's influences away and let the shareholders have a democratic vote. Win for Obama.
Either of these situations will get him the best seat at the State of the Union.
Nice call - get both Tim !
(More weighting on 2, imnsho)
Quote:
A U.S. District Court judge on Monday bumped up the schedule of Apple's pending case with Greenlight Capital, agreeing that the issue would be resolved as soon as possible given the affect an outcome could have on the company's upcoming shareholder meeting.
...given the effect....
It's not so basic as deer and dear, but it's close.
Originally Posted by cincytee
...given the effect....
It's not so basic as deer and dear, but it's close.
The bot keeps reverting my edits. I've given up. Not even locking the post stops it.
Sorry that everyone has to read unproofread stuff like this.