Einhorn’s lawsuit against Apple hangs on ‘irreparable harm’

“It looks like billionaire hedge-fund manager David Einhorn won half his battle with Apple (AAPL) in a New York federal court Tuesday,” Philip Elmer-DeWitt reports for Fortune.

“Lawyers for Greenlight Capital, Einhorn’s firm, had 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,'” P.E.D. reports. “At the end of the 90-minute hearing — expedited because Apple’s shareholders meeting is scheduled for Feb. 27 — U.S. District Judge Richard Sullivan said he was inclined to agree. ‘Candidly I do think the likelihood of success is in favor for Greenlight on the merits,’ he said.”

P.E.D. reports, “What was less clear was whether Greenlight had proved that it would suffer the ‘irreparable harm’ required for the judge to issue a preliminary injunction blocking the vote.”

Read more in the full article here.

Related articles:
Greenlight makes case to stop Apple preferred-stock vote – February 19, 2013
Apple accused by Greenlight of breaking law by bundling – February 16, 2013
Judge approves Apple request to expedite Einhorn’s Greenlight Capital case – February 11, 2013
Apple’s cash return options: Pay U.S. tax man or incur massive debt – February 11, 2013
Bernstein’s Sacconaghi: Most important for Apple is a capital allocation plan – February 11, 2013
Evaluating David Einhorn’s proposal to Apple – February 9, 2013
The colossal gall of bad Apple investors – February 8, 2013
Cramer: By suing Apple, wrong-headed Einhorn has gone too far – February 8, 2013
Analysts: Apple may crack open its massive, bulging wallet for shareholders – February 8, 2013
Apple with $137 billion in cash considers preferred stock – February 8, 2013
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
Legg Mason’s Miller: Apple stock would rise 50% on ‘sensible capital allocation’ alone – February 6, 2013
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
David Einhorn says Apple isn’t a below-average company, it’s just priced like one – May 30, 2012


  1. Just goes to show that the judge is a complete idiot.

    There is absolutely no irreparable harm. The stockholders can *always* vote at some time in the future to issue preferred stock if they so choose.

    The only thing the motion does that Einhorn does not like is remove the ability of the board to issue preferred stock without a stockholder’s vote. What this does is make it so that Einhorn has to get many, many, many people to agree with his preferential type of preferred stock being issued rather than him (and a few other hedge fund managers) just bludgeoning enough board members into agreeing to issue that kind of stock.

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