“Apple Inc on Wednesday was hit by another shareholder lawsuit, a case that is similar to the court challenge that star hedge fund manager David Einhorn brought as part of his push to unlock the company’s cash hoard,” Nate Raymond reports for Reuters. “The new lawsuit, filed by an investor from Pennsylvania in U.S. District Court in New York, seeks to block Apple from moving forward with a February 27 shareholder vote on two proxy proposals.”
“One of the proposals is the same measure Einhorn targeted that would eliminate from the company charter Apple’s ability to issue preferred stock,” Raymond reports. “The other, which was not part of Einhorn’s case, involves an advisory ‘say-on-pay’ vote for shareholders to weigh in on Apple’s executive compensation. The lawsuit accuses the iPhone maker of failing to disclose details of how it determined top executives’ pay.”
Raymond reports, “The plaintiff is Brian Gralnick of Elkins Park, Pennsylvania. He has been an Apple shareholder since 2007, the lawsuit said. It does not list the size of his stake.”
Read more in the full article here.
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Bernstein’s Sacconaghi: Most important for Apple is a capital allocation plan – February 11, 2013
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Einhorn’s Apple lawsuit marks biggest investor challenge in years – February 8, 2013
Gamco’s Haverty: Apple’s cash is ‘shareholders’ cash’ (with video) – February 8, 2013
Apple shares surge following company response to Einhorn – February 7, 2013
Greenlight’s Einhorn sues Apple over plan to eliminate preferred stock, wants more cash distributed – February 7, 2013
Greenlight Capital urges Apple shareholders to vote ‘No’ on proposal 2 that would impede Apple’s ability to unlock shareholder value – February 7, 2013
Greenlight’s Einhorn sues Apple, ‘dissatisfied with capital allocation strategy’ – February 7, 2013
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Gamco’s Haverty: Apple board can be sued over excessive accumulation of cash (with video) – January 28, 2013
Greenlight’s Einhorn: Apple ‘the best big growth company’; Fed stimulus ‘counterproductive’ – July 10, 2012
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A frivolous attorney fee squeeze. Plain and simple.
Some people just LOVE to see their name in print…
Okay morons, screw up one of the most successful companies in history because of your short term greed and idiocy. Sell your damn stock if you don’t like how Apple is being run. And those technicians who want to explain how to me about maximizing stockholder value, etc., please get on a Princess Cruise ship all together and go drift in the ocean.
All I have to say is: http://allthingsd.com/20130213/apple-does-not-have-a-cash-hoarding-problem-comic/
‘Nuff said.
Negatory. Negatory. It just impacted on the Surface.
So democracy doesn’t work for these bozos. Why wood any court allow shareholders to stop a vote. Other shareholders should not have their say?
The only argument they have is that the proxy contains a misrepresentation of a material fact which would mislead the voting shareholders. Again, based on what’s revealed in this news report, and considering the high quality of Apple’s lawyers and the nature of these lawsuits, this lawsuit is frivolous.
Block the vote? FUCK THAT.
the second complaint (how execs are paid), is a valid argument.
It should be for all execs…
Remember how the CEOs of the car industries and mortgage lenders get a bonus after our tax money bails them out?
At least Apple has proven… that they can perform… and dump those execs that don’t… Steve… made sure of it…
There’s always fear when shareholders are allowed to vote en masse. Boards of directors don’t like that. They like uninformed shareholders occasionally casting a stray ballot. The board, and that includes all companies, likes to have it their way. They were elected and they know better. Why do you think so many things are pushed through that are wrong? Preferred stock, compensation and other issues are slammed through quite often with shareholders raising all kinds of hell. It’s in the news constantly. And just try to get rid of a board member. It’s a way of living. They all serve on each others boards. It’s like musical chairs. And don’t think that Apple is any different. If there’s nothing dishonest or devious going on, then there’s nothing wrong with shareholders voting on an issue.
I’m going to sue the share holders holding up my vote!!!
I like the way they use “hit” as if Apple gives a shit about these nobodies and their attempts to hijack proceedings.