David Einhorn's Greenlight Capital hedge fund may succeed in Apple Inc case, judge says
U.S. District Judge Richard Sullivan on Tuesday reserved decision on a lawsuit by the fund, Greenlight Capital, to stop a Feb. 27 shareholder vote on an Apple proposal to end the issuance of preferred stock without investor approval.
"Candidly I do think the likelihood of success is in favor for Greenlight," Sullivan said at a court hearing in New York. The hedge fund sued Apple earlier this month as part of Einhorn's broader attempt to get the company to send a bigger chunk of its $137 billion in cash to shareholders.
The lawsuit contends Apple improperly "bundled" three proposed amendments to its charter into one proxy proposal, a violation of regulatory rules. Sullivan did not specify when he would rule on Greenlight's injunction request, though he cited the impending date of the vote. He said he would now focus on whether Greenlight would be irreparably harmed if the vote moves forward.
Steve Dowling, a spokesman for Apple , declined comment. A spokesman for Einhorn did not immediately respond to a request for comment. The proxy proposal Einhorn has targeted, Proposal No. 2, would amend Apple 's charter to provide for majority voting for directors, establish a par value for Apple stock and eliminate Apple 's power to issue preferred shares without
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