Hedge fund manager David Einhorn’s Greenlight Capital withdrew its lawsuit against Apple Inc, after winning an injunction last week that blocked the iPhone maker from moving forward with a shareholder vote on a controversial proposal.
Apple had sought to limit its ability to issue
preferred shares without a shareholder vote, but Einhorn challenged that in court as part of an effort to unlock more of the company’s $137 billion cash hoard.
US district judge Richard Sullivan ruled in Einhorn’s favor last week and on Friday granted the motion to withdraw his lawsuit.
Einhorn wanted Apple to issue what he called “iPrefs,” or preferred shares with a perpetual 4% dividend. He argued that, if the proposal had passed, it would have complicated future attempts to issue such securities.
“Apple removed the bundled proposal from the shareholder meeting, therefore resolving the issue,” Greenlight said in a statement after the court, acting on its request, ruled to close the case.
Apple did not respond to a request for comment.