This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

David Einhorn Drops Apple Lawsuit

NEW YORK ( TheStreet) -- In light of a victorious court ruling earlier this week, activist investor David Einhorn has dropped his lawsuit against Apple (AAPL - Get Report).

Einhorn had asked shareholders to fight against the company. He put out a letter asking investors to vote against Apple's proposal to do away with preferred stock, which he says restricts "the Board's ability to unlock the value on Apple's balance sheet."

Last week, U.S. District Judge Richard Sullivan in Manhattan granted Einhorn's Greenlight Capital fund a preliminary injunction to stop the vote on that proposal, which was scheduled for Apple's shareholder meeting earlier this week. Apple CEO Tim Cook called the lawsuit a "silly sideshow."

Einhorn has been seeking a way for Apple to return more of its $137.1 billion cash hoard to investors, as he believes the market is not properly valuing it. Last week, he held a conference call to discuss his preferred stock idea, dubbed "iPrefs," arguing that the idea would raise Apple's common stock, without actually using its cash.

In the fourth quarter, Einhorn's 13-F filing showed he raised his holdings in Apple. He owned 1.3 million shares, up from 1.09 million in the third quarter. In addition to that, Einhorn owns the right to purchase another 275,000 shares via call options.

Apple shares have come under pressure in recent months, as Wall Street worries about innovation, increased competition and new products. Earlier today, research firm Credit Suisse cut its earnings estimates on Apple, citing near-term concerns on the iPhone.

At the shareholder meeting, Cook didn't touch on the iPref suggestion, but said that Apple is in "very, very active" discussions on what to do with its cash hoard.

Apple could not be immediately reached for comment on this matter.

Shares of Apple were lower in Friday trading, off 1.78% to $433.53.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $112.10 0.71%
FB $93.34 0.58%
GOOG $649.00 0.55%
TSLA $241.46 0.00%
YHOO $30.96 0.00%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs